Apple plans to raise about $7 billion through its first investment-grade bond sale in more than a year, with proceeds earmarked to support share buybacks and other purposes, adding another entry to a recent wave of heavy debt issuance by major U.S. tech companies.
The size of the offering has not been finalized and could still be adjusted based on investor demand, according to people familiar with the matter. The people said the proceeds will be used for general corporate purposes, including share buybacks, dividend payments and capital expenditures. The iPhone maker will issue seven tranches of bonds with maturities ranging from two to 10 years, the people also said.
Industry research analyst Robert Schiffman said, "Apple's return to the bond market appears to be more about seizing market timing than an actual financing need, and the funds raised can be used for buybacks and dividends." He said that for Apple, "shareholder returns remain a higher priority in capital allocation than the massive AI infrastructure spending faced by its hyperscaler peers."
The bond sale comes amid a wave of fundraising by large technology companies. Since last week, Microsoft, Oracle and Meta Platforms have raised a combined $50 billion in the U.S. market to support their artificial intelligence infrastructure investments. These bonds offered higher yields because investors, increasingly questioning whether heavy AI investments will deliver returns, are demanding greater risk compensation.
Apple is rated AA+ by S&P, and its borrowing costs are expected to be lower than those of some companies that have invested more heavily in the AI boom. A person familiar with the matter said Apple's proposed 2036-maturity bonds are currently being discussed at a yield about 80 basis points above U.S. Treasuries. By comparison, Microsoft's initial price guidance for similar-maturity bonds was up to 95 basis points, Meta's was 185 basis points, and Oracle's was 330 basis points.
Apple last issued bonds in May 2025, when it raised $4.5 billion.
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