The German subsidiary of Spain's largest phone company, Telefonica Deutschland Holding AG is now preparing to offer for sale of Euro denominated bonds as early as this month. The schedule was communicated to its investors by the company.

Four major banks, namely UBS AG, Bank of America Corp, Commerzbank AG and BayernLB are helping in the auction of the notes with a maturity date of between five to seven years according to Bloomberg News. The benchmark size for these kinds of offers is at least Eur500 million or US$640 million according to submitted documentation.

Telefonica Deutschland has been rated by Fitch Ratings at BBB, its second lowest grade for investments. 

The move was elucidated by CFO Rachel Empey during a meeting with investors in Europe, saying Telefonica is the deepest indebted telecommunications in Europe. The sale would take advantage of the increased appetite for debt securities in Spain.