Telstra announces successful SFr 250m bond issue
Telstra today announced the successful issue overnight of a Swiss Franc 250m four-year fixed rate bond in the Swiss domestic market.
Telstra's Chief Financial Officer, Mr John Stanhope, said Telstra’s return to the Swiss market after an absence of three years confirmed the company’s ability to access diverse funding sources in testing market conditions and was a sign that investors recognised Telstra’s sound financial position.
“We were pleased to re-visit the Swiss market which currently provides competitive pricing on a global basis. This market was an ideal opportunity for us because it provides a unique combination of diversification and efficiently priced medium term funding along with execution certainty and quick access using our standard Euro-MTN documentation,” Mr Stanhope said.
The bond issue was jointly conducted by UBS Investment Bank, ABN-AMRO and BNP Paribas, with UBS Investment Bank acting as bookrunner. The issue was targeted at Swiss institutional and retail investors and received strong support and closed over-subscribed. The bond was placed with up to 40 major accounts including insurance companies, fund managers, regional banks and private clients.
The proceeds of the issue will be used for general corporate funding purposes and to refinance maturing long-term debt.
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Telstra is rated A (outlook stable) by S&P, A2 (outlook negative) by Moody’s and A (outlook stable) by Fitch.