Bloomberg News

Vodafone Sells $1 Billion of Bonds as Revenue Falls in Europe

March 13, 2012

Vodafone Group Plc (VOD), the world’s largest mobile-phone operator, issued $1 billion of bonds.

The five-year, 1.625 percent notes priced to yield 80 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg.

Vodafone is raising money in the bond market after last month reporting service revenue growth that missed analysts’ estimates as Europe’s debt crisis roiled the region’s economy. The company’s quarterly service revenue declined 8.8 percent in Spain, the country with the highest unemployment rate in the European Union, and 4.9 percent in Italy.

Newbury, England-based Vodafone earns about 66 percent of its revenue in Europe, Bloomberg data show. The company last issued debt in August, selling $100 million of one-year, 1.15 percent notes. It has 1.25 billion euros of seven-year, 3.625 percent notes coming due in November.

Standard & Poor’s rates the company A-, four levels above junk. Moody’s Investors Service raised Vodafone’s grade to an equivalent A3 in August from Baa1.

To contact the reporter on this story: Zeke Faux at

To contact the editor responsible for this story: Alan Goldstein at

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