Deutsche Telekom is planning to launch a two-tranche, euro-denominated bond offering, subject to market conditions.
The German telco announced today that the offering will include eight and 15-year tranches and be issued under its international finance…
Deutsche Telekom is planning to launch a two-tranche, euro-denominated bond offering, subject to market conditions.
The German telco announced today that the offering will include eight and 15-year tranches and be issued under its international finance unit’s existing debt issuance programme. Deutsche Telekom will guarantee payment of both the principal sum and interest.
A company spokesperson said details of terms and conditions are expected to be released either later today or tomorrow.
The company said the new offering will protect its liquidity reserve position and not increase its net debt position.
Barclays, Deutsche Bank and Societe Generale are lead managers for the offering.
According to a Dow Jones report citing one of the banks working on the transaction, suggested pricing stands at around 85 basis points on the eight-year tranche and at around 120 basis points on the 15-year tranche.
Deutsche Telekom priced two sizeable eurobonds in October 2012 – the first a €650m (US$852.8m) 12-year offering and the second a €500m (US$651m) seven-year offering.
