CABLE & WIRELESS OPTUS COMPLETES SUCCESSFUL US$500 MILLION ISSUE

Cable & Wireless Optus closed an issue of US$500M of senior unsecured guaranteed notes through a private placement to institutional investors in the United States on Thursday 22 June.

The notes carry a coupon of 8% in US$ and the company has swapped the notes back to Australian dollars.

The issue was announced and priced within four days reflecting strong investor demand. No roadshow was required and the only marketing was an electronic Bloomberg roadshow and investor conference call.

According to Deputy Chief Executive and Chief Financial Officer, Norman Gillespie, the issue was a huge success in terms of timing, execution and pricing. The issue was increased from US$350M to US$500M with the issue significantly oversubscribed. Over 100 institutions participated in book build and allocations were made to over 75 investors.

"This issue continues our strategy of diversifying our funding sources and lengthening the maturity profile of our debt. The average term of our borrowings is now in excess of seven years," said Mr Gillespie.

"This is our fifth successful capital markets issue in the past twelve months."

Commenting on the execution and quality of the investors, Mr Gillespie said, "We are delighted that over 80 percent of investors in our debut offering last June participated in this transaction along with over 40 new investors."

"This issue successfully builds on our US investor base established with last year's issue."

"With bank funding in place until 2001, there was no pressure to do this deal, but it made strategic sense," said Mr Gillespie.

The notes are rated A- and Baa1 by Standard and Poor's and Moody's Investors Services respectively.

Special Note:

This release is not an offer of securities. The notes have not been, and will not be, registered under the U.S. Securities Act of 1933. The notes must not be offered or sold in the United States unless an exemption from the registration requirements of that Act applies.

For more information:
Melissa Favero
Cable & Wireless Optus
Phone: 02 9342 5030