In these times of economic uncertainty, telecom company Telstra (ASX:TLS) is looking to bolster the balance sheet. The company has announced a €500 million bond.
The notes are expected to be issued on 23 April 2020 and will have a 10-year maturity.
Telstra plans to use the proceeds for general corporate purposes including prefunding of future debt maturities.
To put this in context, since mid-March Telstra has also secured an additional $AU940 million in bank facilities, and now has a total of $3.6 billion of committed bank facilities.
The company says its bond issue and the additional bank facilities are both well below Telstra’s current average cost of funds.
Shares in Telstra are trading 0.63 per cent higher at $3.17.