Today Telefónica successfully executed a dual-tranche Euro benchmark bond deal: 8-year €1.25bn issued at par with a 1.528% coupon 11.7-year (Oct 2028) €0.5bn issued at par with a 2.318% coupon Investor demand exceeded €3bn, 2x the original internal target of €1.5bn, resulting in an increase of 17% in the final deal size to €1.75bn. The investor base was of high quality with close to 300 orders received, over 70% from international investors. It was the largest transaction in Euros by an European corporate since the US elections, also becoming the first to issue a tranche longer than 10 years in 2017.
Deal closed today follows another Euro dual-tranche transaction on October 17th 2016 for €2bn with 4 and 15 year tenors. Additionally, at the end of November a €1.5bn 8-year loan was signed with China Development Bank.
Finally, on December 28th 2016, Telefónica close a private debt placement of €150mn with a 35-year tenor and 4% coupon, the longest tenor in the Company´s history.
Post-closing and considering the entire €5.4bn, Telefónica extended its average debt life by 8 months since early October covering over half the maturities expected in 2017.
In summary, Telefónica continues to strengthen its balance sheet, in line with its stated objective of maintaining a solid investment grade rating.
Deal closed today follows another Euro dual-tranche transaction on October 17th 2016 for €2bn with 4 and 15 year tenors. Additionally, at the end of November a €1.5bn 8-year loan was signed with China Development Bank.
Finally, on December 28th 2016, Telefónica close a private debt placement of €150mn with a 35-year tenor and 4% coupon, the longest tenor in the Company´s history.
Post-closing and considering the entire €5.4bn, Telefónica extended its average debt life by 8 months since early October covering over half the maturities expected in 2017.
In summary, Telefónica continues to strengthen its balance sheet, in line with its stated objective of maintaining a solid investment grade rating.