Australian incumbent Telstra has announced the completion of a €750m (US$1bn) bond issue. The 10.5-year borrowing carries a 3.75% annual coupon.
The transaction was led by BNP Paribas, Deutsche Bank and HSBC, while CBA was acting as co-lead…
Australian incumbent Telstra has announced the completion of a €750m (US$1bn) bond issue. The 10.5-year borrowing carries a 3.75% annual coupon.
The transaction was led by BNP Paribas, Deutsche Bank and HSBC, while CBA was acting as co-lead manager.
The company commented in a statement that its strong investor base in Europe allowed it to quickly access the market at a time of significant uncertainty.
Telstra CFO John Stanhope said: “This bond issue is Telstra’s second major long term borrowing this year and follows a successful US$1bn issue earlier in April. The issue was closed within two hours of launch. The strong demand reflects the high levels of appetite at present in the bond markets for corporate paper which offers risk diversification and relative stability.
“The order book for the bond closed early with the issue being more than 5 times oversubscribed. Demand came from a wide range of over 250 high quality fixed income investors, including fund managers, insurance companies and banks.
“The bond priced at the tight end of market guidance at a margin of Euro mid-swaps + 145 bps following a 3 day roadshow,” he added.
The company said that the proceeds would be used for refinancing its debt and general working capital purposes.
