Apple raises US$7.5 billion from investment-grade debt offering
Proceeds will fund the company’s general corporate expenses, including its share buyback programme
Apple successfully raised US$7.5 billion through an investment-grade bond offering on Thursday, attracting strong investor demand despite a broader selloff in tech-related debt. Investors placed approximately US$31 billion in orders at the peak of the transaction, four times its size. The sale came as investors evaluated the potential impact of a Democratic victory in the US midterm elections on AI data centers, leading to a sharp decline in stocks and a rise in credit risk measures.
Proceeds from the offering will be utilized to fund Apple's general corporate expenses, including its ongoing share buyback program. The longest bond, maturing in 2036, had a yield premium of only 0.55 percentage points above US Treasuries, compared to higher premiums for similar maturities issued by other tech giants like Microsoft, Meta Platforms, and Oracle Corp. Bloomberg Intelligence analyst Robert Schiffman noted that Apple's return to the bond market seemed more opportunistic than funding-driven, prioritizing shareholder returns through buybacks and dividends over its AI infrastructure spending.
Apple, rated AA+ by S&P Global Ratings, last issued bonds in May 2025, raising US$4.5 billion. The transaction was managed by Bank of America, Deutsche Bank AG, Goldman Sachs Group, and JPMorgan Chase & Co. The S&P 500 Index fell 4.4 percent on Thursday, its steepest decline since April 2025, with Apple shares dropping 1.7 percent. High-grade debt protection costs surged up to 5.9 percent.
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