Institutional lenders have been queueing up to lend money to France Télécom, the heavily indebted telecoms provider that is rated just one notch above junk status.

The French company, which is rated Baa3 by Moody's and triple B- by Standard & Poor's, has persuaded 15 banks to underwrite a total of €5bn ($5.4bn) in its third public fund raising exercise since December. The loan follows a quick-fire €2.6bn bond issue late last year and a €5.5bn bond issue earlier this month and will give the banks valuable league table presence in the syndicated loan market.