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Newsdesk Corporate/financial news Telstra announces successful euro bond issue
Newsdesk Corporate/financial news Telstra announces successful euro bond issue 
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| Telstra announces successful euro bond issue |
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| Saturday, 10 July 2004 | |
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09 July, 2004: Telstra today announced the successful completion of a €500 million ($A850 million) 10 year fixed-rate bond issue. The bond issue was more than two times over-subscribed and follows the recent well received road show led by Telstra's Chief Financial Officer, Mr John Stanhope and Telstra's Corporate Treasurer, Mr Cliff Davis in London, Paris and Frankfurt. "This transaction marks Telstra's return to the capital markets after an absence of nearly two years and follows the recent announcement of our medium term capital management program," Mr Stanhope said. Mr Stanhope said that the euro currency market continued to provide Telstra with quick access to efficiently priced long-term funding and that the company had achieved its pricing and maturity targets. The bond achieved a wide distribution throughout Europe being placed with over 90 quality investors. The pricing of the fixed-rate issue was equivalent to 45 basis points over the Euro 10-year mid-swaps rate and was at the tight end of the pricing range reflecting the strong investor interest, and provides Telstra with an attractive all up cost of funds after swapping to AUD. Mr Stanhope said: "this borrowing has now provided a clear and sound reference price for future long term borrowings by Telstra. In particular this paves the way for a subsequent domestic bond issue later this calendar year, and in fact during the road show we have seen Telstra's margins contract in the domestic market. "The borrowing has shown that the premium that the market has required from Telstra, following the capital management announcement on 21 June and subsequent re-rating to an A+/A1, is minimal and in the region of five or less basis points," he said. Issue proceeds will be mainly used for general working capital purposes and to refinance maturing debt. The bond issue was led jointly by BNP Paribas, Deutsche Bank and JPMorgan. www.telstra.com.au |
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