The bond is under the company’s existing €12 billion EMTN (Euro Medium Term Note) program. Proceeds from the issuance will go towards refinancing senior debt. Telia set the re-offer yield at 0.197% annually, an equivalent of mid-swaps of +45 basis points, and a coupon of 0.125%. According to the company, the bond will target already existing quality investors. According to Telia’s Vice President Agneta Wallmark:
Partnership with Ericsson
Furthermore, the tender offer to buy back about €300 million of bonds maturing around 2021-2024 has been announced. The offer is part of Telia’s ongoing proactive balance sheet management. The bond issuance came after Telia announced a partnership with Ericsson to roll out the 5G network across Lithuania. The five-year partnership agreement is for bettering the digital experience for customers. Under the deal, Ericsson will be the sole partner to deliver radio access network technology (RAN) in Lithuania. On the other hand, Telia plans to upgrade around 2,000 sites in Lithuania.
