Apple to Sell Bonds Worth $5 billion to Fuel Its Share Buyback Programme
Reportedly, Apple Inc. the tech company will be selling bonds and raise about five billion dollars, which will be partly used for the company's share buyback programme.
By the end of the current year, Apple plans to return $130 billion or more to its shareholders. However, this amount will be lesser than half of the twelve billion that was generated in 2014 April when the tech giant was last active in the bond market in the US.
Some of the bonds need 5 years to reach their maturity and some others will even up to three decades to mature.
Analysts opine that the company can spike the returning amounts to its investors further to approximately two hundred billion dollars in the coming three years.
The company also plans to borrow some money as approximately ninety percent of the tech giant's cash is stuck in foreign markets. The company will need to pay the thirty five percent as the top corporate tax in case it took back the money from overseas.
The move from the company comes even though the tech leader is sitting on a loaded up cash stack amounting to $178 billion.