Every Korean bank seems to be talking about the Apple Inc (NASDAQ:AAPL) bonds fiasco that was featured in a local newspaper. The U.S. phone maker is alleged to have tried to invest the better part of enormous cash pile in a local bank deal. An article by the Maeil Business Newspaper stated that Apple had made an order for U.S. dollar bonds of KEB Hana, a situation that Korean bankers are not taking kindly.  However, word has it that KEB Hana declined the bid.

Reliable sources further reveal that Apple’s order KEB Hana’s would be slated to last for three years at around 90bp over U.S. Treasuries. Apparently, KEB Hana, which is one of the South Korea’s largest banks in asset terms, had been promoting the 2019s at around 95bp over Treasuries before being raised to 85bp at the price of US$350 million.

Apple Bonds:  Participants of the deal

The Apple Bonds saga is one of the many that the Cupertino, California corporate has had to shoulder in the recent past.  In 2014, Hyundai Capital Services executive reported that the company had played a role in its latest $500 million issue of three-year floating-rate notes. Nonetheless, a majority of the bankers who have vented out their anger have termed the secretive attempt as crazy.  But in a revised article of the news, Apple’s identity has been pulled out while JP Morgan Asset Management and Norway’s central bank have remained as participants in the deal.

A banker close to Hyundai said, “Apple never bought Hyundai Capital’s bonds again. Hyundai even went to Reno several times, but Apple would never meet them.”

It was noted that Apple had refused any business related to the issuance of future bond from the company.

Apparently, Apple does not seem moved by the current allegations. It is business as usual, having announced a third successive quarter of its iPhone sales. As of September 24, the company had recorded $238 billion being marketable securities. According to the 10-K filing, Apple is so far the world’s biggest corporate investor.

Following its commitment to annual dividend increases, the company gave back to investors $9.3 billion through dividends and share repurchases. However, it remains to be seen how the Apple Bonds fiasco ends