Apple Inc. (AAPL) Weighs $4-Billion Bond Sale In Asia-Pacific

Apple Inc's Apple Store NASDAQ:AAPL

Apple Inc. is planning to raise up to $4 billion through the sale of bonds in Taiwan and Australia. Citing sources familiar with the matter, Reuters reported on Wednesday that Apple is looking to raise $1 billion in Taiwan. The US dollar bonds will have a tenure of 30 years.

On Thursday, The Wall Street Journal reported that the company’s plans are to raise between $3 billion and $4 billion through the bond issuance in Asia-Pacific.

Apple Inc's Apple Store NASDAQ:AAPL

“Liquidity in the Taiwanese bond market is flush, with long-term buyers of debt, primarily life insurance firms, seeking creditworthy names and chasing higher yields. Blue-chip multinationals regularly issue US dollar bonds of such size on the island, home to Apple’s supply chain,” Reuters reported.

According to the reports, Apple may also issue bonds in Japan and Singapore. The company has more than $200 billion in cash, but the vast amount is held overseas. The company would have to pay significant a tax to bring it back to the U.S. Therefore, the bonds sale seems to be the option that the company wants to use for getting the capital.

Bloomberg reported that the company has  hired the Australia & New Zealand Banking Group, Deutsche Bank, and Goldman Sachs for bonds sale in Australia.

Timings for the sale were not reported, but it is expected that the bonds will be issued in the near future.

App Stores Is Down

Apple Inc. confirmed the reports that its App Store is facing some technical problems on both mobile and desktop. The company is working to fix the problems, which were reported by users around 3:30pm ET.

Services experiencing trouble include Apple Music, Photos, Apple TV, Find My iPhone and iTunes in the Cloud, among a number of iCloud services (Backup, Bookmarks & Tabs, Calendar, Contacts, Drive, Keychain, Notes, Reminders and more), reports Tech Crunch.

Analyst’s Views On Apple Car

As we reported yesterday, Elon Musk sees Apple’s electric vehicle as a direct competitor to Tesla Motors Inc . He told Walt Mossberg and Kara Swisher at the Code Conference that Apple Car won’t be arriving before 2020. At the same time, Musk called the company’s car project “a missed opportunity.”

However, Oppenheimer Analyst Andrew Uerkwitz views the company’s entrance into the auto industry “very negatively.”

In an interview with CNBC’s “Power Lunch” on Thursday, Uerkwitz said “clearly they have the pockets. Clearly the opportunity is there. My big worry is do they actually have the experience to enter that market.”

According to Uerkwitz, the company could generate a lot of revenue by getting even just 1% penetration in the overall auto market, but “there’s supply chain issues.”

“I think you’ve got to get scale and so forth. It’s very capital intensive. I wouldn’t expect a positive [return on investment] for many, many years,” Uerkwitz said.

Uerkwitz currently has a “hold” rating on Apple’s stock, which has lost 15.96% during the past six months.

On Wednesday, Musk admired Apple’s car project during Code Conference in Rancho Palo Verdes, California.

“I think they’ll probably make a good car and probably be successful. The car industry is very big — it’s not as though there’s one company to the exclusion of others,” said Musk, who believes Apple could have its vehicle out by 2020.

Last month, there were some reports that Apple Inc. is in talks with the existing firms and engineers experienced in charging stations, indicating the iPhone maker is interested in charging stations.

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