Telefónica has successfully launched a €850 million 10-year green bond, surpassing the initial €750 million plan due to high demand from over 90% international institutional investors. The improved conditions include a reduced spread from the initial 135-140 basis points to a final 110 basis points, with a fixed coupon of 4.183%. The transaction is set for closing and final settlement on November 21st.
This marks Telefónica’s third green bond issuance in 2023, reinforcing its position as a leading sustainable financing issuer in the global telecom sector. The company’s financing strategy maintains a liquidity position of over €20.7 billion as of September, covering maturities for the next three years, with over 80% at fixed rates and an average maturity of 12.3 years.
Aligning with its commitment, announced during the Capital Markets Day on November 8th, Telefónica aims for around 40% of total financing activity to be linked to ESG criteria, surpassing the previous target of 30-35%. The funds from the green bond issuance will primarily support projects enhancing the energy efficiency of telecommunications networks and contribute to environmental sustainability goals. Telefónica plans to report annually on the environmental impact of funded projects, adhering to its Sustainable Financing Framework updated in July and endorsed by Sustainalytics.