Telecom Italia SpA : Telecom Italia issued a 7-year Bond for 1 billion euro. The Company is funding below its average cost of debt

Telecom Italia successfully issued a Euro 1 billion fixed rate bond offered to institutional investors.

The great quality of the orders book confirms the enduring  market's positive attitude towards Telecom Italia's credit, allowing the company to price the issue at a lower yield than the initial guidance, increasing at the same time the issue size.

The yield of the bond, equal to 4.594%, is largely below the average cost of debt (5.4% at the end of September 2013).

The proceeds of this issue will be used to refinance maturing debt.

Details are:

Issuer: Telecom Italia S.p.A.

Amount: Euro 1 billion
Settlement date: 23 January 2014

Maturity: 25 January 2021

Coupon: 4.5%

Issue price: 99.447%
Redemption price: 100%

The actual yield to maturity of 4.594%, corresponds to a yield of 300 basis points above the reference rate (mid swap).

The notes will be issued under the Group's Euro 20 billion EMTN programme and will be listed on the Luxembourg Stock Exchange.

Milan, 16 January 2014