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The report has become a formal document. Apple has filed the final terms of its new bond with the U.S. Securities and Exchange Commission, and the $7.5 billion is now confirmed in black and white. The interest rates are also included, revealing just how cheaply Apple can borrow money.
On November 5, Apple submitted a preliminary prospectus for seven bond issues; the $7.5 billion volume, despite the company's ample cash reserves, was initially based on a Bloomberg report. Now, the final terms and conditions document, dated the same day, has been filed with the SEC.
It confirms the total amount and, for the first time, specifies the amounts and interest rates for each series. The bonds will be issued on November 9. After deducting bank commissions and other costs, Apple will receive approximately $7.47 billion.
Key Facts at a Glance
- Apple confirms the volume of $7.5 billion, spread across seven series with durations until 2036.
- The five fixed-interest series offer coupons between 4.65 and 5.35 percent.
- The premium over comparable US Treasury bonds is between 0.22 and 0.55 percentage points.
- Apple pays approximately $314 million in interest annually for its fixed-interest series.
- Moody's rates the bond Aaa, S&P Global AA+.
Seven series, five fixed coupons
The largest portion is the series maturing to 2036, totaling $2 billion. Two smaller series, amounting to a combined $1.25 billion, have variable interest rates: they pay the US reference rate SOFR plus 0.33 and 0.45 percentage points, respectively.
| Duration until | Amount | Interest | Premium on US Treasury bonds | Return |
|---|---|---|---|---|
| November 2028 (variable) | $0.5 billion | SOFR + 0.33 | – | – |
| November 2029 (variable) | $0.75 billion | SOFR + 0.45 | – | – |
| November 2028 | $1.0 billion | 4,650 % | 0.22 percentage points | 4,676 % |
| November 2029 | $1.0 billion | 4,750 % | 0.27 percentage points | 4,790 % |
| November 2031 | $1.0 billion | 4,900 % | 0.35 percentage points | 4,939 % |
| November 2033 | $1.25 billion | 5,100 % | 0.45 percentage points | 5,139 % |
| November 2036 | $2.0 billion | 5,350 % | 0.55 percentage points | 5,374 % |
Apple is permitted to repay the fixed-rate bonds early, but not the variable-rate ones. The syndicate is led by seven banks, headed by Goldman Sachs, BofA Securities, Deutsche Bank Securities, and JP Morgan.
How much Apple's debts are costing
The annual interest burden is calculated from the amounts and coupons of the fixed-rate series: Approximately $314 million in interest accrues annually on $6.25 billion. The two variable-rate series are additional; their interest rate depends on the respective SOFR level and cannot be determined in advance.
The premiums show just how close Apple's yield is to that of the government. For a ten-year bond, investors are asking only 0.55 percentage points more than for a US Treasury bond with a similar maturity. The credit rating reflects this: Moody's rates the bond Aaa, the highest rating on its scale, while S&P Global rates it AA+.
Small amount compared to the buybacks
Despite the headline, I consider the sum manageable. According to its annual report, Apple spent $86.39 billion on share buybacks in fiscal year 2026, which equates to roughly $7.2 billion per month. The new bond thus covers approximately one month of buybacks.
The terms and conditions sheet does not specify a concrete purpose; the prospectus, as usual, speaks of general corporate purposes including buybacks and dividends.
Would you lend money to a company like Apple for ten years at 5.35 percent, or is the difference to government bonds too small for you? Let us know in the comments where you draw the line.
