Australian incumbent Telstra has priced an issue of A$500m (US$468m) of notes maturing in November 2018.
The 4.5% bonds form part of its €15bn (US$20bn) debt financing programme, announced in early October and arranged by BNP Paribas, the telco said…
Australian incumbent Telstra has priced an issue of A$500m (US$468m) of notes maturing in November 2018.
The 4.5% bonds form part of its €15bn (US$20bn) debt financing programme, announced in early October and arranged by BNP Paribas, the telco said in a stock exchange notice.
No further details have been disclosed and the company was not immediately available for comment.
Fitch has assigned an ‘A’ rating to the notes, saying it reflects Telstra’s “leading market share in the fixed-wire and wireless communication markets”.
The agency added that Telstra is well-positioned to deal with the potential outcome from the Australian government’s current review of the country’s national broadband network policy.
Under the NBN plan, the former Labor government had been aiming to expand high-speed broadband internet access to all Australians by 2021. But the Liberal-National coalition, in power since September, has long criticised the cost of and delays in the project and pledged to address those issues.
Some of the steps which the Coalition said it will take include renegotiating agreements between NBN Co, the public company tasked with implementing the policy, and Telstra to gain access to the latter’s copper assets.
Fitch said: “In the event that the NBN agreements are terminated, Telstra will continue to have a contractual right to receive infrastructure rental payments for equipment leased to NBN Co and could resume its fixed-wire incumbency in areas not covered by the NBN network.
“Moreover, should the NBN be rolled out to over 20% of target premises by the time the new NBN legislation is passed, Telstra will be entitled to a A$500m termination payment.”
Three former Telstra executives have joined NBN Co since the Coalition came into power.
