Tim successfully closed the launch of a fixed-rate bond for 750 million euros intended for institutional investors "with one of the lowest coupons ever for a bond in euro". The company communicates it through a note.
The yield on the issue is 2,876%, lower than the average cost of the group's debt, which stood at 2018% at the end of March 4,6. The issue is part of the process of optimizing and refinancing maturing debt.
Here are the characteristics of the bond issue:
- Issuer: Telecom Italia SpA
- Amount: 750 million Euros
- Settlement date: June 28, 2018
- Deadline: January 28, 2026
- Coupon: 2,875%
- Issue price: 100,000%
- Redemption Price: 100,000%
- The effective yield to maturity of 2,876%, corresponds to a yield of 226,1 basis points above the reference rate (mid swap).
The bonds will be issued under the group's €20 billion EMTN program and will be listed on the Luxembourg Stock Exchange.
