Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), leading telecommunications services provider in Croatia, announces that yesterday, 22 December 2016, it bought Bonds issued by Deutsche Telekom AG (ISIN:XS1382791892), listed on Luxemburg Stock Exchange, in the amount of EUR 125 million, in line with the approval by the Supervisory Board.
In addition thereto, the Supervisory Board has also approved the investment in Commercial Papers of the same issuer in the amount up to EUR 150 million, and the investment therein 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 at the market.
Interest rate on Bonds is paid quarterly, and it is determined as three-months EURIBOR, plus the margin of 0.35% yearly. Bonds become due in April 2020, nominal amount is EUR 125 million, and the purchase price equals to 100.00%.
Commercial Papers yield shall be determined for each individual tranche on the day of its issuance. These Papers are a part of the public DT Global Commercial Paper Programme from the year 2000, and they are being traded with on OTC market.