Telefonica set for bond issue

4 Apr 2013

Telefonica Deutschland Holding is planning to sell bonds as early as this month in a move that would allow the company’s Spanish parent to take advantage of Germany’s lower borrowing costs, reports Bloomberg. According to terms sent to investors, Telefonica Deutschland Holding, which raised around USD1.45 billion last year when it was listed on the Frankfurt Stock Exchange, has hired UBS, Bank of America, BayernLB and Commerzbank (CBK) to help sell senior unsecured notes maturing in five to seven years. The new bonds will help repay a EUR1.25 billion (USD1.6 billion) inter-company loan that Telefonica made to the German unit to help fund a EUR4.3 billion dividend it received last September, the report adds. Telefonica, which provides mobile and fixed line services under the brand O2, is Germany’s fourth largest wireless operator by subscribers, according to TeleGeography’s GlobalComms Database. The firm had a mobile customer base of 19.3 million at the end of 2012, corresponding to a market share of 17.4%.

Germany, Telefonica, Telefonica Deutschland Holding