Fixed income specialist FIIG Securities has added Apple bonds to its DirectBonds Service, giving private investors, SMSFs and clients of financial planners their first chance to access the bonds which were issued amid great investor interest last month.
Like the 300-plus other bonds on the DirectBonds list, the Apple bonds will now be available in minimum parcels of just $10,000, rather than the $500,000 minimum for trading in the institutional market.
FIIG CEO Mark Paton said FIIG’s move to offer the Apple bonds was part of the company’s mission to ensure that the benefits of quality fixed income investments were available to more Australian investors.
“When the world’s largest and richest company announced last month that it would issue bonds in Australia there was understandable excitement among the public but it was premature because only the institutions could buy them at that stage,” Mr Paton said.
“Today is the important date for the rest of us because this is when private investors, SMSFs and clients of financial planners can get some Apple bonds into our portfolios.”
The Apple bonds were issued in four separate lines, with the highest-yielding being a 7-year fixed rate note offering a coupon of 3.7% paid semi-annually. After trading at a premium due to excess demand in the secondary market, it is now offering a yield of maturity of 3.49%.
The other Apple bonds are a 4-year floating rate note offering a yield to maturity of 2.61%, and a 4-year fixed rate note offering 2.53%.
The bonds are available to FIIG clients who qualify as wholesale or sophisticated investors.
Mr Paton said the bonds offered potential value because of Apple’s rock solid credit profile and safe haven status which made them attractive to investors in periods of economic turbulence.
“We expect these bonds to be popular with investors because they offer very low risk but a slightly higher yield than government bonds or term deposits,” Mr Paton said.
As well as Apple bonds, FIIG has recently added bonds from some other famous corporate names to its DirectBonds list including multinational brewer SABMiller and telecommunications giant Vodafone.
To buy Apple bonds, investors should contact FIIG to open a FIIG Client Account which will allow them to start investing.
FIIG Securities Limited, which is licensed by the Australian Securities and Investments Commission (ASIC), is Australia’s largest specialist fixed-income dealer. FIIG has more than $11 billion in term deposits and corporate bonds under advice in its short-term money market, bonds and custody business. The company has offices in Sydney, Melbourne, Brisbane and Perth.
