Telecom Italia makes groundbreaking 50 year bond issue
Telecom Italia today successfully concluded the bookbuilding and setting of conditions for a fixed-rate benchmark 50-year bond issue, offered to institutional investors, for a total of €850 million.
After inaugurating the 30-year segment on the Euro-denominated bond market in January 2003, Telecom Italia has now carried out the first public placement of corporate bonds with a 50-year maturity on the same market.
The operation aims to refinance group debt, as well as enhance the mix of maturities and cost of financing. Two years after the 30-year placement, this operation confirms the great confidence of capital markets in Telecom Italia credit.
The main features of the issue are as follows:
• Issuer: Telecom Italia
• Amount: €850 million
• Issue date: March 17 2005
• Maturity: March 17 2055
• Tenor: 50 years
• Coupon: 5.25 %
• Issue price: 99.667 %
• Yield to maturity: 5.269 %
This issue is part of Telecom Italia's €10 billion EMTN (Euro Medium Term Note) Programme and was arranged with the support of Deutsche Bank.