Deutsche Telekom has priced its benchmark €2bn, two-tranche eurobond.
The offering consists of a €1.25bn eight-year note and a €750m 15-year note, the German telco announced.
The eight-year notes, due 18 January 2021, carry a coupon of 2.125% and…
Deutsche Telekom has priced its benchmark €2bn, two-tranche eurobond.
The offering consists of a €1.25bn eight-year note and a €750m 15-year note, the German telco announced.
The eight-year notes, due 18 January 2021, carry a coupon of 2.125% and were sold at a spread of 78 basis points over midswaps. The reoffer price of 99.072 results in a yield of 2.253%.
The 15-year notes, due 17 January 2028, carry a coupon of 3.25% and were sold at a spread of 115 basis points over midswaps. The reoffer price of 98.72 results in a yield of 3.36%.
The company said the offering generated “very strong” interest from investors, resulting in more than 300 orders totalling about €3.6bn. As such, the bond was distributed to a broad investor base.
The telco noted that the offering forms part of its general corporate financing and does not increase its net debt level.
Lead managers for the transaction were Barclays, Deutsche Bank and Societe Generale. Co-lead managers were Banca Intesa, Bank of Tokyo-Mitsubishi, Commerzbank, DZ Bank, Helaba, LBBW, Lloyds and UniCredit Group.
Deutsche Telekom priced two sizeable eurobonds in October last year – the first a €650m (US$852.8m) 12-year offering and the second a €500m (US$651m) seven-year offering.
