Business News

Telekom Sells EUR 300m Bond Issue

Ljubljana, 10 December (STA) - Telekom Slovenije, the telecoms incumbent, wrapped up a EUR 300m seven-year bond issue Thursday. The proceeds will be used to to refinance existing debt, the company said in a statement.

The euro-denominated bonds were sold to investors following a European roadshow. The banks BNP Parnibas and Credit Suisse acted as joint bookrunners.

The news comes after Telekom recently announced it was examining ways of raising cash to finance its development plans.

The announcement coincided with a decision by international rating firm Moody's to cut the rating of the group from A3 to Baa1 due to its poorer results.

Telekom held the A3 rating since April 2007, while the outlook on its latest rating is negative.

Moody's said the downgrade was related to the uncertainty linked to the transition to the convergence strategy, greater competition and regulation and the general economic situation, which could all reflect on returns.

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