Telefónica has closed a ten-year EUR 850 million green bond issue in the Euromarket to finance the modernisation of its telecommunications networks, both fixed and mobile, with the aim of improving their energy efficiency.
As notified by the company on Tuesday to the Spanish Securities and Exchange Commission (CNMV), the transaction has been carried out through Telefónica Emisiones, as part of its EMTN debt issuance programme, with a guarantee from Telefónica S.A.
This issue, maturing on 21 November 2033, has an annual coupon of 4.183% and an issue price at par (nominal value) of 100%.
Telefónica will apply for the bonds to be admitted to trading on the regulated market of the Irish Stock Exchange and expects the closing and final disbursement of the transaction to take place on 22 November.
More than 90% of Telefónica’s green bond issuance is from international investors
In a statement, the company chaired by José María Álvarez Pallete explains the great reception of the operation by institutional investors, more than 90% of whom are international, which have encouraged the company to issue more than its initial forecast of 750 million.
Telefónica will mainly allocate the funds to the transformation and modernisation of telecommunications networks based on high-speed fixed and mobile networks, including support infrastructure and software to improve their energy efficiency.
In addition, this issue will be used to pay for the implementation of its renewable energy plan and to develop digital products and services focused on saving energy and natural resources.
This is Telefónica’s third green issue in 2023, following the placement of two hybrid bonds in January and August for 1,000 million and 750 million euros, respectively.