US technology giant Apple launched a “benchmark”-sized Australian dollar corporate bond issue its first in Australian currency. The corporate bond sale in Australia managed by Goldman Sachs, Commonwealth Bank, and Deutsche Bank marking its first ever sale in Australian dollars.
Launched as a “benchmark-sized” bond issue typically refers to a raising somewhere between AU$500 million and AU$1 billion ($365 million and $730 million) within just two hours of being available to purchase.
Fixed-income investors were notified on yesterday morning that the AA+ rated maker of the iPhone would launch a two-part “benchmark” bond sale – offering four- and seven-year bonds. The pricing guidance on the four-year bonds that will be offered in both fixed and floating format is 0.70% points over the bank rate, or around 3%. Guidance for the seven-year bonds has been set at around 1.15% points over the bank swap rate or around 3.80 per cent.
The Australian bond sale came after the United Kingdom and Japan similar sales over the past two months. The company is managed to raise nearly $2 billion in the local currencies via both sales.