Mobile operator KDDI has sold Y200bn (US$2.6bn) worth of zero coupon convertible bonds due 2015 to buy back its own shares from the Tokyo Electric Power Company (Tepco).
This issue reportedly represents one of the largest offerings in the country in…
Mobile operator KDDI has sold Y200bn (US$2.6bn) worth of zero coupon convertible bonds due 2015 to buy back its own shares from the Tokyo Electric Power Company (Tepco).
This issue reportedly represents one of the largest offerings in the country in recent years. Daiwa Capital was the sole bookrunner on this transaction, according to reports.
The bonds were listed on the Singapore Exchange on 15 December. They were priced at 103% and issued at 100.5%. The company said that the bonds rank pari passu with all other present and future unsecured obligations, other than subordinated obligations.
In late November, KDDI repurchased approximately 424,000 shares, including 357,500 shares from Tepco, for an aggregate value of Y221bn (US$2.8bn).
The energy company announced a few months ago, that it would sell its entire 7.97% stake in KDDI, and in other companies, to pay for compensation claims following the disaster at its Fukushima nuclear power plant in March this year.
