Apple's Bond Offering Is Shaping Up To Be Gigantic - And The Demand From Investors Is Insane

Last week, when Apple reported earnings it said it was going to go into debt, and sell bonds.

It's the first time the company is going into debt since 1996.

The proceeds of the bonds will be used to fund dividends and stock buybacks.

The company has tons of cash, as everyone knows, but it's parked overseas, and to repatriate it would cause the company a tax hit. So it makes sense to borrow for dividends and buybacks, rather than to use its existing cash.

Anyway, the offering is going to be absolutely gigantic. Reports vary, but it seems likely that this will be the largest non-financial orporate bond offering in histoory.

Different reporters have different numbers.

We're hearing #Apple bond size to be between $10bn to $15bn - at top end would be the biggest US corporate bond of all time

— Chris Adams (@chrisadamsmkts) April 30, 2013

Apple debt sale on track to be the largest ever for a non-financial; likely to total $15B - $18B. - source $AAPL

— CNBC (@CNBC) April 30, 2013

Regardless of how much the company is raising, it's clear that demand is through the roof.

CNBC's Kayla Tausche reported that the order book could be as big as $40 billion, meaning that the company has received at least $40 billion worth of bids for the debt.

One trader we spoke to said: "Hearing AAPL deal already 2x + over subscribed."

He followed that up with: "hearing $40Bn in the book now AAPL. $15-$20bln deal expected."

Good news. Apple finally has a hit on its hands.