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Carrier Services
Asian banks not risk averse with telcos of good standing
Telstra secures A$450 million loan, while China Mobile looks at CDRs
by Ek Heng, Asia-Pacific Correspondent
Telstra, Australia’s incumbent telco, has secured a syndicated term loan facility for A$450 million (US$352 million).
According to Reuters Basis Point, the loan attracted participation from nine banks from East Asia, comprising Bank of China, Bank of Tokyo-Mitsubishi UFJ, Chuo Mitsui Trust & Banking, Bank of Communications, Taiwan Cooperative Commercial Bank, Chang Hwa Commercial Bank, Bank of Taiwan, Cathay United Bank and Hua Nan Commercial Bank.
The deal, funded in A$ and US$, comprises a A$290 million equivalent three-year
Tranche A and A$160 million five-year tranche B. Telstra’s chief financial officer, John Stanhope said the mandated lead arrangers displayed great professionalism in introducing the telco to new investors, while delivering a well-placed and competitive priced transaction, despite the ongoing global financial crisis.
“The positive response to this facility reflects Telstra’s strong financial position and credit ratings, which has allowed us to tap new sources of funding and extended our investor base in the increasingly important Asian capital markets,” he said.
The funds will be used for general corporate funding purposes, Telstra said in its blog.
Following the earlier departure of outgoing chief executive Sol Trujillo back to the U.S., Telstra’s brusque relationship with the government appears to be on the mend under new chief executive David Thodey, who was internally promoted earlier this month, is a Telstra veteran. Joining the company in 2001 as Group Managing Director of Telstra Mobiles, Thodey most recently served as the Group Managing Director Telstra Enterprise and Government.
In addition to Thodey, Telstra appointed a new chairman of the board, Catherine Livingstone, who replaces Donald McGauchie.
Owning both retail and wholesale networks, the telco’s reluctance to share its existing infrastructure facilities in the proposed next generation network has put it at odds with national views. The current conciliatory overtures from both sides point to a possible meeting of minds as moves are afoot, among others, to include giving Telstra a stake in the national broadband network, if it gives up its wholesale arm.
China Mobile looks to CDRs
Meanwhile, China Mobile’s chairman Wang Jianzhou announced that the company is preparing for a listing in the mainland A-share market through issuing of China Depositary Receipts (CDRs).
He made the announcement last week after attending the company’s annual shareholder meeting. The telco has been listed in Hong Kong and New York for nearly 12 years and is eager to seek a listing on the mainland as early as possible to give domestic investors the opportunity to invest in the company.
The chairman expects that issuing CDRs will enable the company to main consistency with its operations in the other two markets in terms of management, supervision and information disclosure.
Providing an update on the status of the telco’s 3G service, he reportedly said the company had invested CNY600 million (US$88.9 million) with six Chinese and foreign manufacturers to develop TD-SCDMA handphone sets. Eleven types will be launched this year and at least 30 other high-end models will be unveiled next year, he said.
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