Telekom Austria unit plans E750m bond
Telekom Austria subdisidiary Telekom Finanzmanagement plans to issue a benchmark bond worth up to E750m in a bid to diversify its debt portfolio and reduce its reliance on bank finance.
The seven-year bond will be divided into a nominal value of E1,000 and mainly target investors in Austria, Germany and the rest of Europe.
The bond will be guaranteed by Telekom Austria AG and Telekom Austria TA AG and listed on the Luxembourg Stock Exchange.
"With this bond we not only strengthen our finance base, but also extend the maturity profile of Telekom Austria Group. Furthermore we diversify our debt portfolio and increase our independence from mere bank finance", Hans Tschuden, CFO of Telekom Austria Group, says in a statement.
"By taking advantage of the prevailing relatively favourable climate in the international bond markets, we secure the refinancing requirements of Telekom Austria Group beyond the year 2010."
Telekom Austria Group says the move will not affect its net debt.
BNP Paribas, Erste Group Bank, The Royal Bank of Scotland and UniCredit CAIB are mandated as joint bookrunners.
