Nokia Siemens may sell $1B in bonds
Nokia Siemens Networks is reportedly exploring the sale of up to $1 billion in bonds. The proposed sale would represent the first time NSN has tapped public markets for funding. NSN would use the money to pay down existing bank debt and fund future investment. The plan, first reported by the Financial Times, has not yet received board approval.The telecommunications infrastructure vendor's parent companies, Nokia and Siemens, allegedly tried and failed to sell NSN to private-equity groups last year, forcing them to kick in €1 billion in additional equity.
Bloomberg BusinessWeek noted NSN is considering the bond sale as investor demand for higher-yielding assets pushes borrowing costs to record lows. European issuers sold €3.5 billion of junk bonds this year, more than 10 times the amount raised in the same period of 2012, according to data compiled by Bloomberg. For more, see this article.