Australian incumbent Telstra has raised E500m in a euro-denominated bond sale. The issue was priced at 95 basis points over the Euro mid swaps rate.
It received strong demand from 150 fund managers, insurance companies and banks and was more than three…
Australian incumbent Telstra has raised E500m in a euro-denominated bond sale. The issue was priced at 95 basis points over the Euro mid swaps rate.
It received strong demand from 150 fund managers, insurance companies and banks and was more than three times over-subscribed. “The strong demand reflects both the high levels of appetite at present in the bond markets for corporate paper and Telstra’s strong credit and solid reputation in the Eurobond market where it has been a regular issuer over many years,” Telstra CFO John Stanhope said in a statement.
In March this year, the company raised E1bn in a 10-year issue in the Euro-market.
The securities carried a 3.625% coupon rate and are due to mature on March 15 2021. The sale was managed by BNP Paribas, Deutsche Bank and HSBC. The company said it will use the proceeds of the issue to refinance maturing debt and general working capital purposes.
In a separate report, Future Fund, Australia’s state wealth fund, recently announced it sold 113.6 million Telstra shares on the market.
Future Fund – which still remains the company’s largest shareholder – sold the shares for A$2.66 each between September 29 and October 19, decreasing the fund’s holding to 10% from 10.9%. This is not the first time that Future Fund is reducing its holding in Telstra. In 2009, it sold 684.4 million for A$3.47 each.
And today, Telstra urged Australian MPs to vote for legislation that would see the break-up of the company, according to reports.
Under the Competition and Consumer Safeguards Bill, the company will have to structurally separate some of its services to cooperate on the national broadband network for A$11bn (US$10.8bn).
The bill is designed to help boost competition in the telecom market.
