Telekom raises $500m

Telekom raises $500m

KUALA LUMPUR (AFP): State-owned Telekom Malaysia Bhd. said it
had raised US$500 million from the issue of two tranches of
Yankee bonds in a recent four-day roadshow that covered nine
cities in the United States.

The Yankee bond issue was initially launched at $400 million
and comprises two tranches of $200 million each of 10-year and
30-year maturity.

But the amount was increased to $500 million following good
response from investors in the United States, a Telekom statement
said.

The first trance was for $200 million nominal value with a 10-
year maturity priced at 72 basis points over the comparable 10-
year benchmark U.S. Treasury yield.

The second tranche of $300 million nominal value, with a 30-
year maturity period, is priced at 102 basis points over the
comparable 30-year benchmark U.S. Treasury yield.

It said proceeds from the issues would be used to partially
finance its capital expenditure as well as its equity investments
in overseas joint ventures.