Australian incumbent Telstra has launched a A$100m (US$101m) 10-year bond issue arranged by Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank, according to media reports.
The notes may reportedly be priced to…
Australian incumbent Telstra has launched a A$100m (US$101m) 10-year bond issue arranged by Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank, according to media reports.
The notes may reportedly be priced to yield about 175 basis points over swap rate.
This issue demonstrates that Telstra is looking to make greater use of the Australian corporate bond market in its financing arrangements, according to a Westpac statement cited by Bloomberg.
In a previous domestic debt issue, back in June, the company sold A$150m of 2020 notes to yield 200 bps over swaps.
A few weeks ago, Telstra raised E500m in a euro-denominated bond sale. The issue was priced at 95 basis points over the Euro mid swaps rate.
It received strong demand from 150 fund managers, insurance companies and banks and was more than three times over-subscribed.
