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.