OPTUS ANNOUNCES PRICING OF EUR 700 MILLION 3.50 PERCENT GUARANTEED NOTES DUE 2020

Optus today announced that it has priced EUR 700 million of Guaranteed Notes due to mature in 2020.

The issue was announced as a benchmark transaction for approximately EUR 500 million. The issue met with a very strong response from a high quality investor base. Optus received over EUR 2.67 billion of interest and the transaction was more than 5 times oversubscribed, enabling the company to upsize the transaction to EUR 700 million and price at the tight end of price guidance.

The Notes, which are denominated in Euro, carry an annual coupon of 3.50 per cent per annum and will mature on 15 September 2020. The Notes will be issued under Optus' EUR 2 billion Euro Medium Term Note Programme and will be listed on the Singapore Exchange Securities Trading Limited.

The issue forms part of Optus' long term financing strategy and enhances the debt maturity profile of Optus. Optus will utilise the funds to refinance its bank borrowings and for general corporate purposes.

Murray King, Optus Chief Financial Officer said, "The strong demand for the Optus Notes is testament to Optus' strong investment grade credit rating underpinned by free cash flow in excess of $1 billion last financial year."

The Notes are rated Aa3 by Moody's Investors Service and A+ by Standard & Poor's respectively, in line with Optus' current credit ratings.

The issue of the Notes was jointly led and managed by BNP Paribas, Citigroup Global Markets Limited, The Hongkong and Shanghai Banking Corporation Limited and J.P. Morgan Securities Ltd.

Media contact:
Liz Greene
Optus Corporate Affairs
Tel: (02) 8082 1132