Global Telecom Holding (GTH) [GLTDQ.L] announced that its fully-owned subsidiary, GTH Finance B.V., an SPV recently established for GTH’s potential bond issuances, will issue a dual tranche USD1.2 billion bond. The bond is composed of a USD500 million 6.25% senior note due 2020 and a USD700 million 7.25% senior note due 2023. The bonds are guaranteed by VimpelCom Holding B.V. for a guarantee fee of 3.0% p.a. each, meaning that GTH will pay 9.25% p.a. on the USD500 million tranche and 10.25% p.a. on the USD700 million tranche. The entire proceeds of the offering will be used to repay the VimpelCom shareholder loan. The expected settlement date for the offering is 26 April 2016.