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Maple bonds are having a good year:

Apple raised those funds in the Maple market, where foreign issuers match wits with domestic investors. When the game was over, Apple raised $2.5 billion at a rate of 2.513 per cent.

While the coupon Apple is required to pay represents one term of the financing, investors and issuers also focus on the spread. At 80 basis points above comparable Canada bonds, the spread is at the bottom end of the range that Apple expected to pay when the issue was launched.
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The $2.5 billion issue represents the largest single tranche Maple bond issue: it is almost twice as large as the previous record, a $1.3 billion borrowing that Canadian investors provided to brewing company Anheuser-Busch last April. It is also more than what Apple had expected to raise when the deal was launched.

At $2.5 billion the financing is understood to be the largest corporate non-financial borrowing in Canadian history.
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Prior to Apple’s record-breaking borrowing, Canadians had invested $8.6 billion in 10 newly issued Maple bonds this year. AT&T raised $1.35 billion via a two-tranche offering; United Parcels raised $750 million; Anheuser-Busch raised a total of $2 billion; Pepsico garnered $750 million, as did Goldman Sachs; while Wells Fargo, Bank of America and Morgan Stanley received $1 billion each. The terms have ranged from five years (Wells Fargo) to 30 years (AT&T and Anheuser-Busch.)

This entry was posted on Tuesday, August 15th, 2017 at 7:00 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.