Telstra closes $1b Eurobond issue

Telstra (ASX:TLS) has made its second $1b debt refinancing this year, with the completion of a Eurobond issue

Telstra (ASX:TLS) has secured €750 million ($1 billion) in long-term funding with the completion of a Eurobond issue.

The issue closed five times oversubscribed, with more than 250 investors applying, according to CFO John Stanhope.

He said the demand during a time of significant financial uncertainty across the continent “demonstrates the depth of Telstra's investor base in Europe.”

The bond issue was jointly led by BNP Paribas, Deutsche Bank and HSBC, and CBA (ASX:CBA) acted as co-lead manager.

The bonds have a 3.75 per cent annual coupon and mature in May 2022.

Telstra in April priced a $US1 billion ($986 million), 10-year bond issue at a coupon of 4.80 per cent.

Telstra's long term credit rating is A from Standard & Poor's and Fitch, and A2 from Moody's. But the agencies have either a negative outlook or — in Moody's case — have placed the company on review for a downgrade.

TLS shares fell 0.64 per cent on Thursday to $3.110.

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