Apple plans first-ever Canadian dollar bond


  • Do Do

    Ok, I admit it, I don’t know wtf it all means.

    • Homer J. Simpson

      They now owe 2.5 billion CAD with interest

    • SV650

      Apple sells investment instruments of a fixed term to investors.
      They use the income from selling the bonds to buy back their shares on the market.
      In 2024, having paid interest semi-annually in the interim they give the bond holders back their money, and have no lasting responsibility to those investors.
      They also now have no ongoing responsibility to the individuals whose shares they bought, reducing their long term financial liability of having to continue to manage shares in perpetuity.

    • Stephen B Morris

      But couldn’t they buy back their shares with the money they already have assuming that they had already paid their taxes on it? Why go through all the nonsense? Or do they feel that they will make more money by doing it this way? Honest question.

    • SV650

      As Uzair Abbas states in the first instance, where the bonds were floated in the USA, it was indeed cheaper to sell bonds than to use cash brought in from other countries. I’m guessing that in his new instance, it is cheaper to pay the interest rate than dividend plus the loss of income on their banked savings.

      Most businesses would like to use someone else’s money to build their business.

    • Stephen B Morris

      Thanks for the lesson.

  • Shobha Bae

    Don’t they have something like $ 260 Billion in cash sitting around ? Why not use a fraction of that money instead ? Why do they need to go and raise another $ 2.5 Billion and pay interest on it , when they already have 100 times that amount sitting around ? The $ 2.5 Billion bonds they are issuing is not even 1 % of the money they already have on hand which is $ 260 Billion.

    I believe almost all of that $ 260 Billion money is overseas for tax purposes. Maybe they don’t want to bring that money into Canada or US and pay huge corporate income taxes on it. They want to keep it in a tax haven.

    • Uzair Abbas

      They can buy shares from overseas, just as Canadians buy apple shares in Canada.

      they’re likely earning high interest on them. The bonds will be floated with very low interest as people know apple has hundreds of billions, so very safe investment for the next 8+ years.