Apple raises billions through bond sale
Apple has raised £10.9bn ($17bn) through a bond sale. The sale is the biggest ever by a non-banking company and will help fund their plan to pay shareholders extra funds.
Apple announced last week that they would be buying $60bn of shares back, and raise its dividends for shareholders by 15%.
The bond sale is the first in almost two decades, and increases Apple’s overall cash reserves, which currently stand at $145bn.
However, most of that money is not in the US: it is sat in accounts placed in other countries, and the company would be liable to pay US taxes on the money if it was placed in a US account.
The technology company has seen a drop in the value of their sales, which have driven down the cost of raising funds for the company. Apple shares dropped by 40% after hitting an all-time high in September 2012.
The money from the sale of the bond will be used to fund special payments to shareholders, who have become angry at the company in previous months – due to the reduction in the value of shares.
The fall in shares and the sale of the bond have prompted many economic experts to question the future of the innovative company. The company also reported its first quarterly drop in profits in10 years, earlier this month.
Analysts have said that Apple’s dominant market share in different products made it an attractive investment options. Apple received offers of up to $50bn for the bond – almost 3 times the amount.