How is Telecom Italias debt structure?
The Telecom Italia Group’s adjusted net financial debt was almost 33.0 billion euro as of September 30, 2010. This represents the difference between the adjusted gross financial debt (39.3 billion euro) and the Group’s financial assets (6.3 billion euro), mainly represented by cash and other assets easy to be negotiated. The Group’s gross financial debt consists mainly (74.4%) of bonds directly issued or guaranteed by Telecom Italia S.p.A. These bonds are issued both in euro and in other currencies. At the moment, around 48% of Telecom Italia’s “outstanding” bonds (i.e. negotiated on the market) are denominated in foreign currencies (USD, GBP and YEN). However, Telecom Italia issues in non-euro currencies are completely guaranteed in case of fluctuations in currency exchange, in order to avoid unpredictable impacts on debt cost (being now equal to 5.1%). Telecom Italia’s bonds are not only completely guaranteed in case of fluctuations in currency exchange, but also in case of fluctuati
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