Apple to Raise 2.8B Euro in New Bond Issue

Apple's latest cash influx will come from a new bond issuing in euros instead of dollars. The iPhone and iPad maker plans to bring in €2.8 billion (about US$3.5 billion) in two blocks set to mature in eight and twelve years, and will likely show record low yields.

Apple's first euro bond sale is underwayApple's first euro bond sale is underway

Apple has been working on issuing bonds in other currencies, and this is the first time the company is putting that plan into action.

The eight-year bond notes will return 1.1 percent to investors, according to the Wall Street Journal, and the 12-year notes will return 1.7 percent. Those rates come in below any other similar bond issuing in euros, which underscores investor faith in Apple.

Money raised from the new bonds will go towards share buybacks, dividend payments, and general corporate use.

The bonds will be a smart financial move for Apple because current interest rates in the area have been sitting just above zero to help boost the economy. For Apple, that translates to big savings.

The bond sale is being managed by Deutsche Bank AG and Goldman Sachs Group.