Nokia taps corporate bonds for €1.75bn

Nokia has raised €1.75 billion in five and ten year bonds in its first international deal, according to the Financial Times.

Demand for the bonds totalled €9 billion as investors flock to high quality company debt because it offers greater yields than government bonds. Indeed, corporate bond markets have broken all-time record volumes this month.

Despite warnings of a shrinking  market last week, investors flocked to Nokia because it is a household name - a business they know and understand - with strong cash flows and a rarity value that provides diversity for portfolios, the FT reported analysts saying.

The report added, "Although it is estimated Nokia paid more than double the spread over risk-free government debt than they would have this time last year, the overall cost of funding was still relatively low."

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