Telefonica closes its first hybrid bond issue, amounting to 1 bn euros

Telefonica closed its first sustainable perpetual hybrid bond issue, amounting to 1 billion euros, and the first in the global telecom sector as well.
Telefonica’s 5G network in Spain
The company also announced a hybrid bond tender offer, which begins today and is scheduled to close on 15 February. With both transactions, Telefonica continues to proactively manage its hybrid capital base.

The sustainable hybrid issuance was well received by institutional investors, with a participation of more than 500, with demand exceeding €7 billion. The hybrid has 8.25 years reset date and its coupon reached 2.376 percent, the lowest hybrid coupon in the history of Telefonica.

With the proceeds obtained,  Telefonica will finance or refinance projects with positive environmental and social impact in Spain, Germany and/or Brazil, which will contribute to SDG 9 (build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation) and SDG 7 (ensure access to affordable, safe, sustainable and modern energy for all).

Environmental projects will focus on the transformation of the copper network to fibre, 85 percent more energy efficient and with fewer breakdowns. In this way, Telefonica reinforces its commitment to climate change and moves towards meeting its decarbonisation targets by 2025: a 90 percent reduction in energy consumption per unit of traffic (MWh/PB) and net zero emissions in the company’s four main markets, going one step further the Paris Agreement.