TOKYO-NTT DoCoMo Inc. said it will issue four-year domestic straight corporate bonds worth about $420 million later this month to raise funds for its FOMA third-generation service. The expected coupon rate range is 0.15 percent to 0.45 percent.
The offering period is from J an. 17-29.
The news follows yesterday’s announcement from Moody’s Investors Services Inc. that it changed its outlook for the Aa1 senior long-term debt ratings of NTT DoCoMo to negative from stable. Moody’s said the change reflects its concern over the future of DoCoMo’s 3G service.
The revised outlook should not impact the new bond offer, however, as its Aa1 rating was not changed.
The rating agency cited slow uptake for FOMA. “This, in turn, means that the company’s ability to generate stable and exceptionally rich cash flow, which supports its Aa1 rating, may also be increasingly challenged over the intermediate term,” Moody’s said.
However, Moody’s added that DoCoMo is still the dominant operator in Japan with 58 percent mobile market share and a “strong” financial base.
