Telefonica Germany, which listed on the Frankfurt stock exchange last year, is considering issuing bonds in a move that would lessen dependence on its Spanish parent.
CFO Rachel Empey told German business daily Boersen-Zeitung that the telco was aiming…
Telefonica Germany, which listed on the Frankfurt stock exchange last year, is considering issuing bonds in a move that would lessen dependence on its Spanish parent.
CFO Rachel Empey told German business daily Boersen-Zeitung that the telco was aiming to find the most attractive financing options for the operator, and that in this context a bond issue was being examined.
In the future Telefonica Germany might receive a mix of financing, partially from its parent, Telefonica, and partially from bond markets. But it could also decide to completely switch to bond financing going forward, she said.
Telefonica’s O2 is the smallest of Germany’s four major operators, trailing T-Mobile, Vodafone, and KPN’s E-Plus.
In the past year Telefonica Germany generated revenues of €5.21bn according to its preliminary 2012 results. Net debt stood at €842m, and OIBDA at €1.28bn, giving it a debt/OIBDA leverage of 0.7x. The company has said that it wants to maintain the leverage ratio below 1.0x for the financial year 2013 and beyond.
