Deutsche Telekom has issued bonds with a total volume of EUR 3.5 billion. The bonds were issued with terms of 4.75, 7 and 10 years.
The following table shows the details of the bonds:
|
Volume |
Term |
Spread over Mid-Swaps |
Coupon |
Yield |
|
EUR 1,000m |
4.75 years (to October 30, 2021) |
+ 0.33% |
0.375% |
0.421% |
|
EUR 1,250m |
7 years (to January 30, 2024) |
+ 0.53% |
0.875% |
0.899% |
|
EUR 1,250m |
10 years (to January 30, 2027) |
+ 0.73% |
1.375% |
1.465% |
The bonds were issued via Deutsche Telekom International Finance B.V. The bonds, i.e., bond amount and interest, are guaranteed by Deutsche Telekom AG.
The issuance does not increase Deutsche Telekom’s net debt position.
Due to the favorable environment in the bond markets Deutsche Telekom optimizes the financing structure of the group further.
This placement follows Deutsche Telekom’s decision in principle to further support T-Mobile US’ liability management. Deutsche Telekom considers to make available further inter-company lending to T-Mobile US on a secured basis of up to US-Dollar 4.0 billion, which includes US-Dollar 0.66 billion already committed in December 2016. Such financing option could provide opportunities for T-Mobile US to refinance part of its existing debt.
The transaction follows a clear rationale for the further optimization of Deutsche Telekom’s financing structure resulting in significant interest costs savings on level of Deutsche Telekom group. In addition, the secured financing will limit T-Mobile US’ credit risk for Deutsche Telekom.
The issuance was arranged by BNP Paribas, Credit Suisse, Deutsche Bank as Bookrunners and by Banca IMI, Commerzbank, DZ Bank, Helaba, LBBW and UniCredit as Co-Lead-Manager.
Disclaimer
This media information is for information purposes only and is not an offer to sell, or the solicitation of an offer to buy, any securities.
The distribution of this media information and the offer and sale of Deutsche Telekom securities in certain jurisdictions may be restricted by law. Any persons reading this communication should inform themselves of and observe any such restrictions.
This media information is not an offer of Securities for sale in the United States or to U.S. Persons.
The Securities may not be offered or sold in the United States or to U.S. Persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) absent registration with the United States Securities and Exchange Commission or an exemption from registration under the Securities Act. The Securities are in bearer form and are therefore subject to U.S. tax law requirements. Deutsche Telekom AG and Deutsche Telekom International Finance B.V. do not intend to register any part of the offering in the United States or to conduct a public offering of the Securities in the United States. Accordingly, the Securities may not be offered, sold or delivered within the United States or to U.S. Persons.
This communication is an advertisement for the purposes of applicable measures implementing Directive 2003/71/EC (such Directive, together with any applicable implementing measures in the relevant home Member State under such Directive, the "Prospectus Directive"). A prospectus prepared pursuant to the Prospectus Directive for the debt issuance program under which the bond is issued, is published on the website of Deutsche Telekom AG.
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