Apple Inc. (NASDAQ: AAPL) has returned to the U.S. investment-grade bond market for the first time since 2023, issuing a multi-tranche debt offering estimated between $5 billion and $6 billion. The move aims to finance share buybacks, dividend payments, and acquisitions, as well as to offset an anticipated $900 million increase in costs due to U.S. tariffs on Chinese imports.
The bond sale includes up to four tranches, with the longest portion—a 10-year note—priced approximately 70 basis points above comparable U.S. Treasuries. This yield premium is higher than Apple’s previous bond offerings, indicating increased investor risk perception amid ongoing trade tensions.
Despite holding nearly $30 billion in cash reserves, Apple is leveraging debt markets to manage short-term liquidity needs and mitigate the financial impact of tariffs. The company has also been shifting production to India and Vietnam to reduce exposure to U.S. import tariffs.
The bond issuance comes as part of a broader surge in investment-grade corporate debt, with an estimated $35 billion to $40 billion in new issuance expected this week. Apple’s issuance is managed by Barclays, Bank of America, Goldman Sachs, and JPMorgan.
Following the announcement, Apple’s stock experienced a decline of over 3% on the New York Stock Exchange, reflecting investor concerns over the company’s exposure to trade policy uncertainties.
An Aerial Shot of the Apple Park on Pexels by Zetong Li
