Release of 26.11.2013

Telekom Austria Group Successfully Placed a EUR 750 million Eurobond with a Coupon of 3.125% p.a. and a Maturity of Eight Years

Vienna, 26 November, 2013 - Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announced that its finance subsidiary, Telekom Finanzmanagement GmbH has successfully launched a benchmark bond with a volume of EUR 750 million and a maturity of 8 years.

The bond, ISIN XS0999667263, bears a coupon of 3.125% p.a. and has a minimum denomination of EUR 1,000 each. The issuer of the bond is Telekom Finanzmanagement GmbH, guaranteed by Telekom Austria AG. The offering generated strong demand with an order book amounting to more than EUR 5.0 billion and attracted primarily European investors, particularly from France, Germany and Austria.

“This transaction was Telekom Austria Group’s seventh successful issuance in the Eurobond market. The coupon of 3.125%, which lies significantly below the Group’s average cost of debt, as well as the oversubscription demonstrate our continued ability to successfully access debt markets. The favourable conditions make this bond the preferred option for financing the spectrum costs”, said Hans Tschuden, Chief Financial Officer of the Telekom Austria Group.

The expected ratings for the bond are Baa2 (stable outlook) by Moody’s and BBB- (stable outlook) by S&P.

The proceeds from this bond emission will be used to help finance the EUR 1,030 mn payment for spectrum in the 800, 900 and 1800 MHz frequency bands in Austria, which were acquired in October 2013.

The bond is launched as part of EUR 2.5 billion EMTN Program, which was set up in April 2012, and is listed on the Luxembourg stock exchange (www.bourse.lu).

JP Morgan, BNP Paribas and Raiffeisenbank International have acted as joint bookrunners.


Legal notice:
This announcement serves marketing purposes and is no offer for sale of securities. A public offer in Austria, Germany and Luxembourg is being made solely by means and on the basis of the published prospectus of Telekom Austria Aktiengesellschaft and Telekom Finanzmanagement GmbH dated 9 April 2013, as amended with supplement No. 1 dated 22 November 2013, which is approved by the Luxembourg Commission de Surveillance du Secteur Financier and available free of charge at Telekom Austria Aktiengesellschaft, A-1020 Vienna, Lassallestraße 9, during usual business hours and can be re-viewed in electronic form on the website of the Luxembourg Stock Exchange (www.bourse.lu).

This announcement is not an offer for sale of securities in any jurisdiction where such an offer is illegal. This announcement may not be disseminated in the United States, Australia, Canada, Japan or any other jurisdiction where the dissemination or publication would be unlawful. The securities will neither be registered under the US Securities Act of 1933 nor with any authority of any U.S. State nor in accordance with any applicable securities laws in Australia, Canada or Japan and may not be offered or sold in the United States or for the account of U.S. persons or any other persons domiciled in Australia, Canada, Japan or the United States.

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