Telia Company AB (publ) issued a hybrid bond of EUR 600 million. The new hybrid bond is issued as part of Telia's refinancing of the upcoming call dates for the outstanding hybrid bond in April 2023. The bond has a maturity of 60.25 years with the first reset date after 5.25 years.

The coupon is 4.625% and the re-offer yield has been set at 4.875%. The hybrid bond is expected to be rated two notches below Telia's senior rating, that is, BBB- (S&P) and Baa3 (Moody's) and will be treated as 50% equity and 50% debt. The bond will be accounted for as interest-bearing debt and will be subordinated to Telia's senior debt.

A Tender Offer for buying back up to EUR 600 million of outstanding hybrid bonds with call dates in April 2023 has also been announced. The Tender Offer constitutes part of the company's strategy to proactively manage the portfolio of hybrid bonds and the total size of the company's outstanding hybrid notes will remain unchanged. This early refinancing strengthens the balance sheet by replacing shorter dated hybrids with a longer dated hybrid bond.

The Joint Bookrunners mandated by Telia for this transaction were Barclays, BNPP, Citigroup (B&D) and NatWest Markets.