Deutsche Telekom has raised $2.75 billion through the issuance of three-year, five-year, and seven-year bonds, the German telecom company announced on Wednesday. The bond issuer is the financial branch Deutsche Telekom Finance B.V., and the guarantor is Deutsche Telekom AG.
The three-year bonds, valued at $750 million, with a fixed interest rate and maturing in 2019, were sold to investors with a coupon rate of 1.5 percent and a yield of 1.532 percent. The three-year bonds of $250 million, with a variable interest rate and maturing in 2019, were sold to investors for 45 basis points above the three-month Libor rate for loans in U.S. dollars. The five-year bonds with a fixed interest rate, worth $1 billion, maturing in 2021, were sold with a coupon rate of 1.95 percent and a yield of 1.984 percent. An additional $750 million worth of bonds, maturing in 2023, was sold to investors with a coupon of 2.485 percent and a yield of 2.486 percent.
This offering is part of Deutsche Telekom’s overall corporate financing and will not increase net debt, the company stated. The issuance was led by Goldman, Sachs & Co., J.P. Morgan Securities, RBC Capital Markets, Citigroup Global Markets, Credit Suisse Securities, and MUFG Securities Americas.
