AT&T Taps Euro Bond Markets for €2 Billion Funding Push

AT&T is issuing bonds in Europe, looking to raise at least €2 billion across four euro-denominated notes and a 26-year sterling bond. The US telecom company's move is being closely watched as it taps into the European market for funding.

The deal includes four euro notes with maturities ranging from 4 to 19 years, along with a 26-year sterling bond. Initial price talk suggests investors will be paid more for lending longer, with spreads over mid-swaps ranging from about 95 basis points for the 4-year note to roughly 200 basis points for the 19-year.

The final rates and total amount raised will be determined at pricing later Monday, after banks gauge investor demand. This will also serve as a test of whether Europe still offers cheaper funding options compared to issuing straight in US dollars.