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.

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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.