Apple Inc. is planning to add to its recent run of bond deals with a debut sale in Swiss francs, The WSJ reports.
The sale could come as soon as Tuesday.
Goldman Sachs and Credit Suisse have been hired to manage it, the person familiar with the matter said.
High demand for Swiss franc-denominated debt has sent government bond yields into negative territory. This means investors are now willing to pay to lend Switzerland cash for as long as 10 years. Last month, the Swiss central bank removed the franc’s euro peg, prompting the currency to rise sharply.
Those negative yields means Apple will also be able to borrow cheaply as corporate bonds are typically linked to the price of government debt.
A short-dated bond could be sold with a negative yield - a first for a corporate bond sold in Europe.
Last week, Swiss food maker Nestlé saw yields on its short-term euro debt turn negative, one of the first times a corporate bond has moved into negative territory, following a swath of eurozone government debt from Germany to Finland that have seen yields tumble below 0%.
According to the person familiar with the deal, Apple will likely consider a 10-year or 15-year bond, meaning the yield would probably be in the low double-digit area.
Last week the tech giant sold $6.5 billion of dollar bonds as it continues to raise cash from debt sales to help fund dividend payments and share buybacks.
