Telstra completes 1bn euro bond issue
March 15, 2010
Telstra Corporation Limited (TLS) announced the completion of a 10-year benchmark €1 billion Eurobond issue, with a 4.25% annual coupon and a maturity of 23 March 2020. The company said the bond was about six times oversubscribed with an order book comprising almost 300 individual orders from a wide range of high quality fixed income investors, including fund managers, insurance companies and banks.
Telstra said issue proceeds would be used mainly for retiring shorter-term bank debt and for general working capital purposes.
Chief financial officer, John Stanhope, said the Eurobond issue represents Telstra’s successful return to the debt capital markets after a period of absence following the global financial crisis.
“It demonstrates the investor interest in Telstra's solid credit and business fundamentals as Australia’s largest telecommunications service provider,” Mr Stanhope said.
“The offering achieved pricing at the tight end of market guidance and reflects the improving market sentiment and investor demand in the Euro market, and the excellent work by the joint lead managers.”
Mr Stanhope added that the successful bond issue, which would provide Telstra with around $1.5 billion of cost effective long-term funding and help to lengthen the average maturity of Telstra's debt portfolio.
At the close of trade yesterday, Telstra shares were trading at $3.04.
Telstra said issue proceeds would be used mainly for retiring shorter-term bank debt and for general working capital purposes.
Chief financial officer, John Stanhope, said the Eurobond issue represents Telstra’s successful return to the debt capital markets after a period of absence following the global financial crisis.
“It demonstrates the investor interest in Telstra's solid credit and business fundamentals as Australia’s largest telecommunications service provider,” Mr Stanhope said.
“The offering achieved pricing at the tight end of market guidance and reflects the improving market sentiment and investor demand in the Euro market, and the excellent work by the joint lead managers.”
Mr Stanhope added that the successful bond issue, which would provide Telstra with around $1.5 billion of cost effective long-term funding and help to lengthen the average maturity of Telstra's debt portfolio.
At the close of trade yesterday, Telstra shares were trading at $3.04.
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