With its first bond raise in nearly six years, Telstra is set to raise $650 million with the five-year senior bond reportedly seeing $1.9 billion of demand according to The Australian.
It is the first major Australian raise by Telstra since 2017. The company had previously launched a Euro bond in 2020.
The margin is 100 basis points above the bank bill swap rate, with The Australian reporting that the coupon was reduced to 4.93 per cent in Wednesday morning’s market from about 5 per cent.
The NAB has also entered the market with a subordinated bond for $2 billion of orders.
Also read: ANZ Capital Notes 8 Raising Announced
Telstra’s senior, unsecured, fixed-rate bond will mature in 2028.
The joint lead managers are ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac.
It is understood the raise is part of Telstra’s normal course of activities in raising funds.
