Telekom Austria Finance B.V. Issues Promissory Notes of EUR 300 million
Vienna, August 6, 2008: The Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that its subsidiary Telekom Austria Finance B.V., has successfully issued debut promissory notes with a total volume of EUR 300 million.
“With the broad placement of the promissory notes the Telekom Austria Group has successfully continued its capital market orientated financing strategy. This has enabled us to extend the palette of financing instruments at our disposal. The oversubscribed placement underlines Telekom Austria's excellent standing on the international capital market.” states Hans Tschuden, CFO of Telekom Austria Group.The facility has a maturity of 4 years. The issued promissory notes consist of a floating tranche of EUR 200 million and fixed interest tranche of EUR 100 million. The fixed tranche carries a coupon of 6.08%. The initial coupon of the floating tranche valid for the first 6 month period has been set at 6.20%.
Promissory notes are flexible capital market instruments primarily placed among banks and insurance companies.
The net proceeds of these promissory notes representing an innovative funding instrument for an Austrian borrower will be used for general business purposes including the refinancing of existing debt.
The transaction was more than three times oversubscribed. Hence, the transaction volume was increased from the originally planned EUR 100 million to EUR 300 million. Given the volatile capital market environment this placement with approximately 30 German and international banks and insurance companies can be deemed a resounding success and has contributed to a broadening of Telekom Austria Group's investor base.
DZ BANK AG and WestLB AG acted as joint lead arranger of this highly successful transaction.
Contact:
Peter E. Zydek
Head of Investor Relations
Telekom Austria Group
Tel.: +43 (0)59059 – 119 000
E-mail:peter.zydek@telekom.at
