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Australian telco Telstra Corporation (ASX:TLS) has gained long-term funding after its 500 million euro (US$687.1 million) bond issue was snapped up by institutional investors.
Telstra’s bond issue was priced at 95 basis points above the Euro mid swaps rate and received strong demand from 150 fund managers, insurance companies and Banks, the telco said in a statement on Wednesday.
The bonds have a 3.625 per cent annual coupon and will mature on March 15, 2021.
Telstra’s chief financial officer John Stanhope said the bond issue was more than three times over-subscribed and followed a one billion euro issue by Telstra last March.
The funds raised will be converted into local currency and will help Telstra to lengthen the average maturity of its debt portfolio, he said.
Telstra will use the funds for refinancing maturing debt and general working capital purposes, he added.
The bond issue was jointly led by BNP Paribas, Deutsche Bank and HSBC.
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