Apple (AAPL) Launches $4.5 Billion Bond Offering to Fund Buybacks, Refinance Debt

Apple (AAPL, Financials) returned to the bond market Monday, raising $4.5 billion across four tranches in a deal that drew strong investor interest. It marks the tech giant’s first debt issuance in two years.

Apple issued $1.5 billion in 3-year notes, and $1 billion each in 5-, 7-, and 10-year maturities. The company plans to use the proceeds for share repurchases and to retire $8 billion in debt maturing between May and November.

Investor demand topped $10 billion, reflecting continued appetite for high-quality bonds amid recent credit market volatility. Analysts say Apple’s timing capitalized on narrowing investment-grade spreads, which tightened after President Trump eased trade tariffs last month.

Apple’s bond offering is part of a broader surge in investment-grade issuance ahead of the Federal Reserve’s policy meeting. Investors have been shifting toward safer assets following six weeks of outflows from investment-grade funds.

Market participants said Apple has a track record of launching debt deals when spreads are tight. Its credit reputation and predictable issuance patterns have made it a reliable borrower.

This article first appeared on GuruFocus.