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The
net proceeds of the offering are to be used to fund parent
company BCE Inc's <BCE.TO> acquisition of data center operator
Q9 Networks Inc and for general corporate purposes.
The telecom company will use the money to finance its latest
spending to shore up its internet business, whether acquiring
data centers or laying fiber-optic cables. It compares to
ultra-low returns at the bank, and dismal or risky stock
returns.
The $850 million 2 percent MTN debentures will mature on October
1, 2021, and will be issued at a price of C$99.804 per $100
principal amount.
The $650 million 2.9 percent MTN debentures, will mature on
August 12, 2026, and will be issued at a price of C$99.733 per
$100 principal amount.
"With this transaction, we are pleased to have secured
significant debt capital at what is the all-time lowest
financing rate ever achieved by Bell Canada on any MTN debenture
issuance," said Glen LeBlanc, Chief Financial Officer for Bell
Canada and BCE Inc, said in a statement.
(Reporting by Anya George Tharakan in Bengaluru; Editing by
Sunil Nair)
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