The transaction was highly oversubscribed, benefitting from strong demand from institutional as well as private investors, following a credit investor update call on the previous day. On that basis and a yield of 2.053 percent, Telefónica Deutschland decided to upsize the transaction moderately to €600 million from an initial €500 million benchmark target. In terms of region, allocation was driven by high-quality asset managers from Germany and the UK with each taking approximately 30 percent of the allocation. The net proceeds of the bonds will be used for general corporate purposes. The net debt level of the company will not increase after the issuance of the bond
"This offering is a great success for us", says Rachel Empey
, CFO of Telefónica Deutschland. "The extraordinary demand demonstrates the confidence among investors in Telefónica Deutschland's strategy."
The bonds will be listed for trading in the Regulated Market of the Luxembourg Stock Exchange under the ISIN code XS0912992160 as of November 22, 2013. The prospectus is available on the website
of Telefónica Deutschland.
Bank of America Merrill Lynch, BayernLB, Commerzbank and UBS Investment Bank acted as joint bookrunners for the transaction.