Apple sells $5.5 billion in bonds to fund buybacks and dividends

The American electronics company Apple Inc sold high-quality bonds on Monday worth $ 5.5 billion in four segments to finance its share buyback program and cash dividends to shareholders.

This step came especially in the current conditions that have noticeable decline in bond yields during the last period.

The longest term of offering was for 40 years with a yield of 118 basis points over US Treasuries, which is lower than the initial consultations on prices in the 150 basis points, according to Bloomberg sources.

The order valued more than $23 billion, and Goldman Sachs, JPMorgan Chase and Bank of America managed the sale.

Many major banks issued huge amounts of bonds after announcing their quarterly results, which led to an increase in the proceeds of selling bonds over expectations during the same month.

Noteworthy that Apple is one of eight major companies with excellent credit rating that sold bonds to take advantage of the recent relative stability and the relatively low cost of borrowing.

The company has $180 billion in cash and cash equivalent assets.