Apple issued $7.5 billion in bonds, demand was massive
Apple confirmed on Thursday that it issued $7.5 billion in bonds. The company stated this in the final pricing term sheet filed with the U.S. Securities and Exchange Commission (SEC). According to the published terms, it expects net proceeds of approximately $7.47 billion, which is the amount after deducting underwriting discounts and other offering expenses.
Seven tranches with maturities starting from 2028
The issuance is divided into seven series. Two carry floating rates, while the remaining five have fixed rates:
- $500 million with a floating rate, maturing in 2028,
- $750 million with a floating rate, maturing in 2029,
- $1 billion at 4.65 percent, maturing in 2028,
- $1 billion at 4.75 percent, maturing in 2029,
- $1 billion at 4.90 percent, maturing in 2031,
- $1.25 billion at 5.10 percent, maturing in 2033,
- $2 billion at 5.35 percent, maturing in 2036.
For floating-rate bonds, the interest rate changes over time based on market conditions, while for fixed-rate bonds, it remains the same throughout the entire period. Apple may also choose early redemption for the fixed-rate series.
Investors wanted more than four times the offering
According to Bloomberg, investor demand reached approximately $31 billion, which is more than four times the size of the entire offering.
Why Apple issued $7.5 billion in bonds
The company will use the funds for general corporate purposes, which, according to the prospectus, include share buybacks, dividend payouts, acquisitions, and debt repayment.
Bloomberg Intelligence analyst Robert Schiffman pointed out that capital return to shareholders remains a higher priority for Apple than extensive investments in artificial intelligence infrastructure, which its competitors are facing.
The website Finimize reported maturities ranging from 2026 to 2036, but the published terms of the issuance state 2028 to 2036.
Apple already entered the bond market in May 2025, raising $4.5 billion at that time.