Telstra sells 1b euro of 10-year bonds

Telstra Corporation Ltd has sold one billion euros ($A1.5 billion) of 10 year bonds.

The bonds, with a coupon rate of 4.25 per cent per annum, will mature on March 23, 2020.

The offer was six times oversubscribed, Melbourne-based Telstra said in a statement on Tuesday.

The company received 300 individual orders from investors including fund managers, insurance companies and banks.

The bonds would be swapped into Australian dollars and provide Telstra with cost effective long-term funding, the telco said.

The proceeds would be mainly used to retire shorter term bank debt and as general working capital.

"The Eurobond issue represents Telstra's successful return to the debt capital markets after a period of absence following the global financial crisis," chief financial officer John Stanhope said in the statement.

"The offering achieved pricing at the tight end of market guidance and reflects the improving market sentiment and investor demand in the Euro market."

The sale was arranged by BNP Paribas,Deutsche Bank and JP Morgan.

Telstra has a long term credit rating of A from Standard & Poor's and from Fitch, and A2 from Moody's Investors Service.

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