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Apple Raising 1 Billion from Taiwan

Apple is planning to raise the share capital of 1 billion from the Asia Pacific region. The reports are still not confirmed from the Reuters. Experts say that Apple could be only tapping Taiwan for the components and the assembly parts. This is for the first time when Apple is launching the bonds in Taiwan for raising the share capital. Some of the sources say that Apple is also planning to join the debt market of the companies who have sold their assets for collecting billions from the market.

Apple Raising 1 Billion from Taiwan

Apple is already sitting on a huge cash reserve. Apple is said to have somewhere close to $233 billion in their name however most of their earning is outside United States and cannot be called without incurring the tax liability to the government. Borrowing money of the bond is one of the strategies of the Apple for paying for its share to fund the dividend payments and their share buyback program. Apple has already placed their bonds in the markets of USA, Japan and Australia however Taiwan is a logical market for the company.

It has been estimated that Apple is saving billions of dollars each year by simply borrowing the money at lower interest rates while leaving the cash bulk outside United States. The Taiwanese market is completely liquid for long term debt. Most of the blue chip companies are saving millions and billions of dollars by simply issuing bonds. This is one of the most commonly practiced methods by them. Apple is also following the same principles for saving their costs on tax expenditures. Apple is currently termed as one of the richest company in the world. There is no such company in the world who is holding capital cash reserve as compared with Apple. These techniques also help them in expanding their earnings.

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