Apple raises US$1.4b in Taiwan bond sale

TAIPEI, June 8 — Apple Inc has raised US$1.38 billion (RM5.6 billion) in its first bond sale in Taiwan, almost 40 per cent more than initially expected on an island that is home to the US technology firm’s vast supply chain.

The 30-year bond will list on June 22, the Taipei Exchange, the island’s over-the-counter securities market, said today.

The bond, callable after the second year, is Apple’s first in Taiwan, home to the bulk of a hardware supply chain that involves contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd and iPhone assembler Foxconn, formally known as Hon Hai Precision Industry Co Ltd.

Apple priced the bond with a yield of 4.15 per cent, people close to the matter told Reuters yesterday. The yield was below an indicative range of 4.2 per cent to 4.3 per cent due to strong demand, market participants had said.

Apple joins a string of global names to sell billions of dollars worth of bonds on Taiwan’s busy debt market. The biggest US dollar bond sold to date was that of AT&T Inc at US$2.62 billion early last year, bourse data showed.

Taiwan’s debt market is highly active with long-term buyers — primarily life insurers — short of creditworthy names offering high yields. — Reuters

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