First hybrid bonds issued in sterling by a Spanish company since financial crisis
LONDON, Jan. 14, 2014 /PRNewswire/ -- BNY Mellon, the global leader in investment management and investment services, has been appointed paying agent, common depositary and fiscal agent on a tranche of hybrid bonds issued by Telefonica Europe B.V.
The hybrid bonds, which are deeply subordinated guaranteed fixed-rate reset securities, raised £600 million and are unconditionally and irrevocably guaranteed on a subordinated basis by Telefonica, S.A. Telefonica's hybrid bonds will pay 6.75% interest per annum and have a non-call option for the first seven years which means the issuer can redeem them after this period.
"We have seen a recovery in the issuance of European corporate bonds recently, particularly in hybrid bonds," said Dean Fletcher, Head of EMEA Corporate Trust, BNY Mellon. "These are the first hybrid bonds issued in sterling by a Spanish company since the financial crisis. The fact the issuance was oversubscribed shows that there is strong demand for sterling denominated bonds from investors in the UK and elsewhere."
Telefonica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers, with its mobile, fixed and broadband businesses as the key drivers of its growth in Europe and Latin America.
Notes to editors:
As of September 30, 2013, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 67,000 debt-related issues globally. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of September 30, 2013, BNY Mellon had $27.4 trillion in assets under custody and/or administration and $1.5 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
This press release is issued by The Bank of New York Mellon to members of the financial press and media.
All information and figures source BNY Mellon unless otherwise stated as at September 30, 2013.
The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818.
Branch office: One Canada Square, London E14 5AL. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority.
The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority.
Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
+44 20 7163 4109
SOURCE BNY Mellon