LONDON (Alliance News) - Telecommunications giant Vodafone Group PLC on Friday said it has raised a total of GBP2.88 billion through the issue of convertible bonds, which it had announced on Thursday.
The bonds will be issued in two tranches, one with an 18-month maturity and 1.5% coupon and the other with a three-year maturity and 2.0% coupon.
The bonds will be convertible into ordinary shares representing around 5.0% of the company's current share capital, and it will hedge its exposure to share price movements via an option strategy.
The initial conversion price for the bonds will be 217.30 pence per share, Vodafone's closing price on Wednesday. The stock closed Thursday at 216.48p.
Vodafone added there is the potential for it to buy back shares following conversion of the bonds in order to mitigate dilution for existing shareholders by using the proceeds from its USD5.0 billion Verizon note issue.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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