Telia Company today issued a hybrid bond of EUR 600 million

Telia Company today issued a hybrid bond of EUR 600 million. The new hybrid bond is issued as part of Telia’s refinancing of the upcoming call dates for the outstanding hybrid bond in April 2023. The bond has a maturity of 60.25 years with the first reset date after 5.25 years. The coupon is 4.625 percent and the re-offer yield has been set at 4.875 percent.


Agneta Wallmark, VP Head of Group Treasury at Telia Company, says: “The volatility in the financial markets has continued and 2022 has been challenging from an issuer´s perspective. By this second hybrid transaction this year Telia has re-opened the corporate hybrid market after the summer and we are very pleased to have attracted large investor interest for our credit today, which gives us an opportunity to refinance an additional part of our coming hybrid calls to a reasonable yield.”


The hybrid bond is expected to be rated two notches below Telia’s senior rating, i.e. BBB- (S&P) and Baa3 (Moody’s) and will be treated as 50 percent equity and 50 percent debt. The bond will be accounted for as interest-bearing debt and will be subordinated to Telia’s senior debt.

A Tender Offer for buying back up to EUR 600 million of outstanding hybrid bonds with call dates in April 2023 has also been announced. The Tender Offer constitutes part of the company’s strategy to proactively manage the portfolio of hybrid bonds and the total size of the company's outstanding hybrid notes will remain unchanged. This early refinancing strengthens the balance sheet by replacing shorter dated hybrids with a longer dated hybrid bond.

The Joint Bookrunners mandated by Telia for this transaction were Barclays, BNPP, Citigroup (B&D) and NatWest Markets.

For more information, please contact our press office +46 771 77 58 30, visit our Newsroom or follow us on Twitter @Teliacompany.