Deutsche Telekom has issued bonds with a total volume of USD 3.5 billion. The bonds were issued with terms of 3, 5 and 10 years.
Due to the attractive financing conditions in USD, especially in the short and medium-term maturities, Deutsche Telekom accessed the USD bond market for the second time in six months.
The bonds were issued via the Dutch financing subsidiary 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 the Deutsche Telekom Group's net debt.
The proceeds will be used for general corporate financing such as the refinancing of upcoming maturities. There is no relation to a specific investment project. Financing is provided in line with the upcoming capital market maturities and the Group's financial planning, as well as the respective capital market environment.
The following table shows the details of the bonds:
|
Volume |
Term |
Spread over U.S. government bonds |
Coupon |
Yield |
|
USD 850m |
3 years (to January 17, 2020) |
+ 0.80% |
2.225% |
2.246% |
|
USD 400m |
3 years (to January 17, 2020) |
+ 0.80% |
3M-USD-Libor + 0.58% |
n/a |
|
USD 1,000m |
5 years (to January 19, 2022) |
+ 0.95% |
2.82% |
2.821% |
|
USD 1,250m |
10 years (to January 19, 2027) |
+ 1.25% |
3.60% |
3.615% |
The issuance was arranged by Citigroup Global Markets Inc., Deutsche Bank Securities, Morgan Stanley & Co. LLC as Active Bookrunners and Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc. and Santander Investment Securities Inc. as Passive Bookrunners.
This media information is not an offer for the sale of the notes in the United States or any other state or jurisdiction, and there shall not be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. In particular, the notes may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. 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 debt securities in the United States.
This media information is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The notes are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
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