Telecom Italia issues seven-year bond
Italy’s Telecom Italia has issued a seven-year bond for €1bn aimed at institutional investors.
The company specified it is funding below its average cost of debt.
The amount and quality of the orders allowed raising funds at a lower yield than indicated by initial guidance, the company said.
The great quality of the orders book confirms the enduring market’s positive attitude towards Telecom.
Italia’s credit, allowing the company to price the issue at a lower yield than the initial guidance, increasing at the same time the issue size.
The yield of the bond, equal to 4.594%, is largely below the average cost of debt (5.4% at the end of September 2013). The proceeds of this issue will be used to refinance maturing debt.