Following its Austrian counterpart Telekom Austria, Telecom Italia plans to become the second European telco to issue hybrid debt.
The Italian incumbent said it will launch a hybrid subordinated debt securities programme of up to €3bn. The issues will…
Following its Austrian counterpart Telekom Austria, Telecom Italia plans to become the second European telco to issue hybrid debt.
The Italian incumbent said it will launch a hybrid subordinated debt securities programme of up to €3bn. The issues will be made over a period of 18 – 24 months.
In late January Telekom Austria placed a €600m hybrid bond. Analysts had suggested that KPN might follow suit, but the Dutch incumbent instead announced plans for a €4bn rights issue earlier in the week. However, KPN left the door open for the issuance of a hybrid by stating it was still considering alternatives, including raising parts of the overall amount through equity-linked or other capital instruments.
The issuance of hybrids can help indebted operators keep their company ratings, as agencies consider half of the bonds as equity.
Earlier today TI published its preliminary 2012 annual results, announcing revenues of €29.5bn, down 1.5% from €29.96bn the previous year.
Net financial debt stood at €28.3bn at the end of 2012. The company said over the next three years it intends to cut its debt, adding that it planned to “defend the group’s financial position”.
TI said it targets debt levels of €27bn by the end of 2013.
