Telstra $1.5 billion bond on cards if PCCW deal proceeds

Telstra could be issuing a $1.5 billion bond as early as October if, as planned, it forms a strategic alliance with Pacific Century CyberWorks (PCCW). Under the terms set out in a memorandum of understanding (MoU) signed in April, the two companies intend to form internet protocol backbone and mobile phone joint ventures. Telstra would invest $3 billion û $1.5 billion in the joint ventures and $1.5 billion in a convertible note to be issued by PCCW.