Spanish telecoms group Telefonica is preparing for a seven-year benchmark bond issuance to be priced at mid-swaps plus 340 to 350 basis points, according to sources cited by Europa Press.

BayernLB, BNP Paribas, Citi, Commerzbank, MUSI, and SG CIB are underwriters in the operation.

The move follows a successful deal by BBVA in the dollar market. The Spanish bank was welcomed by the market with $7.5bn of demand for a $2bn three-year bond.

The telecoms firm also carried out a five-year bond issuance for €750m back in September with an annual coupon rate of 5.811%. It was later expanded by another €250m.

More corporate issuers from peripheral European countries are returning to the capital markets as yields stabilise and market access improves.

By 12:05, shares of Telefonica were up 0.53% to €10.48.

SC

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