Singtel Optus to issue A$350m, A$500m notes on July 1

SINGAPORE Telecommunications (Singtel) on Thursday said its wholly-owned Australian unit Singtel Optus has priced two deals: A$350 million (S$334.7 million) worth of five-year notes as well as A$500 million in 10-year notes.

Optus' wholly-owned subsidiary Optus Finance will issue them on July 1, 2020, under its Australian dollar debt issuance programme.

The A$350 million five-year notes will carry a 1.6 per cent coupon and mature on July 1, 2025, while the A$500 million 10-year notes will carry a 2.5 per cent coupon and mature on July 1, 2030.

Both are guaranteed by Optus and certain subsidiaries.

"This issue is part of Optus' long-term financing strategy and extends the debt maturity profile of Optus," Singtel said.

Proceeds will be used for Optus' general corporate purposes.

Australia and New Zealand Banking Group, Commonwealth Bank of Australia and Westpac Banking acted as joint lead managers and bookrunners.

Singtel shares finished Wednesday at S$2.53, up S$0.01 or 0.4 per cent.