Telecom New Zealand is selling NZ$100 million ($77 million) of bonds, called TeleBonds, to retail investors, a Reuters report said.

The offer has the option of an additional NZ$200 million ($154 million) in oversubscriptions, the report said.

The notes, issued by TCNZ Finance and guaranteed, offer three maturities of three-, five- and seven-years.

The three-year piece, maturing on June 15, 2011, will pay a coupon of 8.25%, the 5-year piece due on June 15, 2013, will pay 8.5% and the seven-year piece due on June 15, 2015, will pay 8.65%.

TCNZ has received subscriptions worth NZ$55 million and will keep the offer open until December 15. Most of the interest is for the five- and seven-year maturities because of their higher coupons, according to sole lead First NZ.

The proceeds will fund general business acitivities.

Source:telecomasia.net