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Hrvatski Telekom buys Deutsche Telekom securities for 125 mln euro

Hrvatski Telekom buys Deutsche Telekom securities for 125 mln euro Author: Hrvatski Telekom. License: All rights reserved.

ZAGREB (Croatia), December 23 (SeeNews) - Croatia's biggest telecoms operator, Hrvatski Telekom [ZSE:HT-R-A] said on Friday it has purchased bonds issued by Deutsche Telekom and listed on Luxembourg Stock Exchange, in the amount of 125 million euro ($130.4 million).

The bonds were purchased on Thursday with the approval of the company's supervisory board, Hrvatski Telekom said in a filing to the Zagreb bourse.

The supervisory board has also approved an investment of 150 million euro in commercial paper of the same issuer, which shall depend on the level of available funds.

"Both investments are being undertaken with the goal of more efficient cash management under the unchanged investment policy of the company, taking into account the current situation with interest rates in the market", Hrvatski Telekom explained.

The interest rate on the bonds is paid quarterly and is determined as three-months EURIBOR, plus a margin of 0.35% yearly. Bonds are due in April 2020.

The yield on commercial paper shall be determined for each individual tranche on the day of its issuance, the telco said.

This financial instrument is a part of the public DT Global Commercial Paper Programme from the year 2000. The commercial paper is being traded on the OTC market.

($=0.958280 euro)


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