MILAN: Telecom Italia said on Monday it planned to issue new debt and use part of the proceeds to buy back older bonds to refinance its debt ahead of maturity, taking advantage of current low interest rates on financial markets.
The former Italian telecoms incumbent said in a statement the buyback offer targeted four bonds due in 2015, 2016 and 2017 with an overall outstanding nominal amount of 3.35 billion euros ($4 billion).
Telecom Italia has yet to set the maximum amount to be repurchased.
It set the repurchase price on the 2015 bond at 101.65 and said it would announce on Jan. 21 the prices at which it offers to buy back the 2016 bond and two bonds due in 2017.
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