Telekom Austria Group has Successfully Placed a EUR 750 mn Bond with a Coupon of 6.375% pb
Vienna, January 21, 2009: The Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announced today that its subsidiary, Telekom Finanzmanagement GmbH has successfully placed a benchmark bond with a volume of EUR 750 million following the announcement of its plans earlier this week.
Vienna, January 21, 2009: The Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announced today that its subsidiary, Telekom Finanzmanagement GmbH has successfully placed a benchmark bond with a volume of EUR 750 million following the announcement of its plans earlier this week.
The bullet bond, ISIN XS0409318309, has a maturity of 7 years, bears a coupon of 6.375% p.a. and has a denomination of EUR 1,000 each. The issuer of the bond is Telekom Finanzmanagement GmbH guaranteed by Telekom Austria AG and Telekom Austria TA AG. The bond generated strong interest with an order book amounting to more than EUR 3.3 billion and primarily attracted European investors, particularly from Germany and Austria.
“The transaction was the Telekom Austria Group’s third successful foray into the Eurobond markets following two benchmark issues in 2003 and 2005. The oversubscription and the large number of investors it attracted underpins our ability to access debt capital markets despite the current volatile market conditions, diversifies our funding and extends the duration,” said Hans Tschuden, Chief Financial Officer of the Telekom Austria Group.
The bond was allocated at 65% to pension funds, insurances and asset managers, 25% was placed with banks and 10% for retail demand. The proceeds of the bond are expected to cover the refinancing requirements of the Telekom Austria Group beyond 2010 and will not affect the net debt position of the Telekom Austria Group.
The bond is listed on the Luxembourg Stock Exchange and a prospectus is available on its website www.bourse.lu
BNP Paribas, Erste Group Bank AG, The Royal Bank of Scotland plc and UniCredit CAIB AG have acted as joint bookrunners.
Contact:
Peter E. Zydek
Head of Investor Relations
Telekom Austria Group
Tel.: +43 (0)59059 – 119 000
E-mail:peter.zydek@telekom.at