VIENNA (Reuters) - Telekom Austria is eyeing a hybrid bond issue of up to 800 million euros ($1.06 billion) to help finance major investments, Austrian magazine News reported, citing Chairman Rudolf Kemler.
In an interview published on Thursday, Kemler pointed to an Austrian auction of next-generation radio frequencies due in the second half of this year and the need to prolong existing frequency contracts.
“We presumably don’t have (funds for this) in the Telekom group. That does not arise from current liquidity,” he was quoted as saying.
“But we will employ capital market instruments. We have also authorized management to take steps on this.”
Asked if he was referring to a hybrid issue of up to 800 million, Kemler said: “That is the range.”
A Telekom Austria spokesman declined comment.
Telekom Austria shares fell 1.1 percent to 5.80 euros by 3:48 a.m. ET, the biggest decliners in the Stoxx 600 European telecoms sector index, which was barely changed.
Telekom Austria officials have previously played down prospects of raising fresh capital or selling assets to cut debt faster.
Reporting by Michael Shields; Editing by Hans-Juergen Peters