Telstra Plans First Benchmark Australian Bond Sale Since 2005

Telstra Corp. (TLS), Australia’s biggest phone company, is planning its first benchmark-sized bond sale in its home market since 2005.

Telstra hired Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, National Australia Bank Ltd. and Westpac Banking Corp. to manage the offering, according to an e- mailed statement from National Australia Bank today. The Melbourne-based phone company may offer five-year notes yielding about 100 basis points more than swap rates, said a person familiar with the matter, who asked not to be named as the terms aren’t set.

Telstra sold A$500 million ($518 million) of November 2013 securities in 2005, in its last domestic sale of that size or more, according to data compiled by Bloomberg. Corporate bond issuance in Australia has accelerated after BHP Billiton Ltd. (BHP) priced A$1 billion of notes on Oct. 9 in the first Australian dollar-denominated sale from the world’s biggest miner in more than a decade, and the largest line of notes ever sold in the nation by a company outside the financial industry, data compiled by Bloomberg show.

Telstra, rated A by Standard & Poor’s, its sixth-highest investment grade, has A$12.7 billion of bonds outstanding in eight currencies, the data show.

To contact the reporter on this story: Sarah McDonald in Sydney at smcdonald23@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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