Apple plans to raise up to $4 billion from bond sales in Asia Pacific

AppleInc.is issuing bonds in Taiwan and Australia as part of its plans to raise $3 billion to $4 billion in debt in the Asia Pacific region, a person with knowledge of the plans said.

The move is the U.S. technology giant’s latest step to raise fresh funds for dividend payments and share buybacks, the person said.

While Apple is sitting on a huge cash pile of $233 billion as of March, about 90% of those cash holdings are held abroad.Instead of repatriating its overseas earnings—which would be taxed if brought back to the U.S.—Apple has typically been using the proceeds from debt sales to help fund its share buybacks and dividends, according to the person.

Apple is starting its latest bond issues in Taiwan and Australia with roughly $1 billion in each market, but the amounts may increase depending on the demand, the person said. In addition to the two markets, the company is also considering issuing bonds in Japan and Singapore, the person added.

An Apple spokesman declined to comment.

The latest plans follow a series of foreign bond issues by Apple over the past year. The company has already sold bonds in euros,yenandSwiss francs, among other currencies.

Since Apple started returning cash to shareholders in 2012, the company has paid out $163.1 billion in share buybacks and dividends through March, according to the company. Apple hassaid it is now planning to return $250 billion in cash to shareholders by the end of March 2018, up from its prior plan to return $200 billion by March 2017.

(THE WALL STREET JOURNAL)