France Télécom’s oversubscribed bond issue prompts borrowing increase

8 Jan 2004

France Télécom’s launch of a three-part bond issue yesterday exceeded expectations as, with order books oversubscribed by mid-morning, leading banks upped the borrowing from around EUR1.7 billion to EUR2.5 billion. France Télécom’s much-improved credit rating has seen demand surge and the telco’s cost of debt has improved exponentially since early 2003; this is expected to be reflected in today’s pricing of the bonds. The issue is made up of three and eight-year Euro bonds, and a 30-year bond denominated in sterling.

France, Orange Group