Finnish telecom equipment maker Nokia announced that it has completed a €500 million issuance of senior unsecured notes under its Euro Medium Term Note (EMTN) programme. The notes carry a fixed annual coupon of 3.625% and will mature on June 5, 2032. Application has been made for the notes to be admitted to trading on the regulated market of Euronext Dublin. Senior unsecured notes rank ahead of subordinated debt in the event of bankruptcy and are considered high-grade debt instruments.
Nokia stated that the net proceeds from the offering will be used for general corporate purposes, including the early redemption of its existing €500 million 3.125% notes due May 2028, in accordance with their redemption terms. This proactive liability management helps the company smooth out its debt maturity profile.
As a leading global telecom infrastructure provider, Nokia has long used its EMTN programme as a standardized framework for multi-tenor debt issuance. The senior unsecured status typically allows for higher credit ratings and therefore cost-efficient funding. The refinancing takes place at an opportune window and is designed to optimize the debt maturity schedule while maintaining prudent balance sheet management.