BNY Mellon is depository for novel hybrid bonds 15 January 2013Madrid Reporter: Georgina Lavers
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BNY Mellon is now the paying agent, common depositary and fiscal agent on a tranche of hybrid bonds issued by Telefónica Europe B.V.
The hybrid bonds, which are deeply subordinated guaranteed fixed-rate reset securities, raised £600 million and are “unconditionally and irrevocably” guaranteed on a subordinated basis by Telefónica, S.A., said a statement. These are the first hybrid bonds issued in sterling by a Spanish company since the financial crisis.
Telefónica’s hybrid bonds will pay 6.75 percent interest per annum and have a non-call option for the first seven years which means the issuer can redeem them after this period.
“We have seen a recovery in the issuance of European corporate bonds recently, particularly in hybrid bonds”, said Dean Fletcher, head of EMEA corporate trust at BNY Mellon.
“These are the first hybrid bonds issued in sterling by a Spanish company since the financial crisis. The fact the issuance was oversubscribed shows that there is strong demand for sterling denominated bonds from investors in the UK and elsewhere”.
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. Its mobile, fixed and broadband businesses are key drivers of its growth in Europe and Latin America.
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