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SYDNEY, May 3 (Reuters) - Telstra Corp, Australia's dominant phone company, is considering issuing a seven-year New Zealand dollar bond issue at 175 to 180 basis points over swap, a fund manager who has been contacted on the sale said on Monday.
Telstra met on Friday with bond investors in New Zealand to discuss a possible offer to replace NZ$ commercial paper borrowings.
The bond discussions are jointly managed by Bank of New Zealand, Commonwealth Bank of Australia and Westpac Institutional Bank.
Telstra has NZ$255 million ($185.5 million) in kauri bonds outstanding, with 2011 and 2014 maturities.
Kauri bonds are New Zealand dollar bonds issued by foreign borrowers in New Zealand.
Telstra held debt updates in Europe earlier in the year. [ID:nSGE62302I].
The phone company is rated A by S&P and Fitch and A2 by Moody's. (Reporting by Cecile Lefort)
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