Telecom will launch a $A1.5 billion debt programme in Australia to help finance its Australian operation, according to The Australian newspaper.
The report says most analysts believe the programme is purely for refinancing purposes, but that one said it would enable Telecom to make new acquisitions in the telco sector - which is currently undervalued.
However, Telecom finance general manager Pat Duignan is quoted as saying the programme was to fund both AAPT, which Telecom wholly owns, and other operations but not new initiatives.
"It's not to be construed as a burst of new borrowing for new initiatives".
Telecom will announce its annual report on August 14.