Apple Saves $724 Million In Well-Timed Bond Sale

Posted on Jun 4 2013 - 5:14pm by Editorial Staff

According to a Bloomberg report, Apple has its first bond sale since 1996 to generate to launch a $100 billion capital return program for shareholders which have resulted in saving worth millions. This means that a benchmark for the entire fixed-income market now rose to 2.13 percent by the end of last week from 1.67 percent on April 30.

As per the publication, the company has acquired an initial $40 million in annual interest savings compared with current yields on the six bonds it sold. This means, with current rates, Apple saves $724 million in bond sales.

“That’s real money, even to Apple,” David Brown, a manager of fixed-income assets at Neuberger Berman commented. “I don’t know if it was insight or luck, but they timed the market very well, so they were able to capture some very attractive yields to finance their capital plan. Kudos to them.”

A well worth time for Apple.

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts.