The order book of Australian incumbent Telstra for its 10-year bond issue has attracted about A$200m worth of bids, according to media reports.
Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank reportedly…
The order book of Australian incumbent Telstra for its 10-year bond issue has attracted about A$200m worth of bids, according to media reports.
Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank reportedly arranged the issue.
The notes were priced to yield about 175 basis points over swap rate. The proceeds of the issue will be used for refinancing existing debt and for working capital purposes, Telstra was quoted saying.
Telstra’s bond has a coupon of 7.75% maturing on July 15 2020. The A$150m issue was initially sold in July and gave 200bps over swap, explain reports.
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.
Also 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.
