Apple to sell corporate bonds for first time since 2023

Apple Inc. is set to issue investment-grade bonds for the first time since 2023, according to sources familiar with the matter.

The offering is expected to consist of up to four parts, including a 10-year note priced approximately 0.7 percentage points above US Treasury yields.

The bond sale is scheduled for May 5, 2025, and is part of an anticipated US$35 billion to US$40 billion in new bond issuances across various industries this week.

Barclays, Bank of America, Goldman Sachs, and JPMorgan Chase are managing the transaction.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Strategic timing: Apple’s bond history shows pattern of opportunistic financing

Apple’s return to the bond market follows a strategic pattern of timing issuances during key market conditions to capitalize on favorable borrowing opportunities.

The company last issued bonds in 2021 with a $14 billion offering that came during historically low interest rates, similar to its May 2020 issuance of $8.5 billion during a record corporate debt borrowing spree 1 2.

This approach to debt financing contrasts with Apple’s landmark $17 billion bond sale in 2013, which at the time represented the largest corporate bond offering in history and demonstrated the company’s strategic use of debt markets 3.

Apple’s consistent approach to the bond market demonstrates how tech giants with strong balance sheets can be selective about when they issue debt, entering markets when conditions align with their financial objectives rather than out of necessity.

The timing of this new issuance suggests Apple may be seeing an opportune moment to secure financing before potential market changes, particularly as projections indicate companies could issue as much as $1.5 trillion in U.S. bonds in 2025 4.

2️⃣ Cash paradox: Why cash-rich companies still borrow

Apple’s decision to issue bonds despite historically strong cash positions illustrates the financial strategy many tech giants employ to optimize capital structure without repatriating overseas cash.

At the end of 2020, Apple held $36 billion in cash and cash equivalents alongside nearly $160 billion in marketable securities, yet still chose to issue bonds—highlighting how debt can be more efficient than using existing cash reserves 1.

This approach generated debate among analysts when Apple’s 2021 bond issuance carried yields higher than the company’s dividend yield, raising questions about the economic rationale that likely centered on tax efficiency and capital structure optimization 1.