Telecom Italia issued a 5-Year Bond for 750 Million Euro

10/13/2011 - 07:30 PM

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The amount and quality of the orders allowed raising more funds at a lower yield than indicated by initial guidance
 

Telecom Italia successfully issued a Euro 750 million fixed rate bond offered to institutional investors; the transaction is the first by a Southern European issuer since beginning of July, 2011.
 

The great quality of the orders book confirms the market positive attitude towards Telecom Italia’s credit and allowed the company to price the issue at a lower yield than the initial guidance.
 

With today’s transaction Telecom Italia refinanced on the capital markets Euro 2.5 billion since the beginning of the year at a weighted average cost of 5.65%, an extremely low level despite the volatility of financial markets.
 

Details are:

Issuer: Telecom Italia S.p.A. Amount: Euro 750 million
Settlement date:
20 October 2011 Maturuty: 20
January 2017 Coupon: 7%
Issue price: 99.406%
Redemption price: 100%

The actual yield to maturity is 7.15%, corresponding to a yield of 498 basis points above the reference rate (mid swap).
 

The notes will be issued under the Group’s Euro 20 billion EMTN programme and will be listed on the Luxembourg Stock Exchange.

Milan, 13 October 2011