Today, Telefónica has successfully closed an issue of green hybrids for an amount of 1,750 million euros. In addition, the company has simultaneously launched a buyback offer on three hybrids in circulation.
The issue has been structured in two tranches. The first, for 900 million euros and first redemption date in January 2031, has closed with a coupon of 4.381% (yield of 4.375%). The second, for 850 million euros, contemplates the first redemption date in January 2034 and a coupon of 4.881% (yield of 4.875%).
The book has reached up to 12 billion orders, with more than 300 orders in each section. The widely diversified investor base has stood out for the majority participation of international investors, who have represented more than 98% of the final placement.
In this way, Telefónica has managed to improve conditions significantly. From the initial coupon indications of 5% in the short tranche and 5.50% in the long tranche, it has been possible to reduce it by 62.5 basis points in each tranche until the final cost is set at 4.375% and 4.875%, respectively.
Both operations, both the issuance of the green hybrid and the buyback offer, aim to continue proactively managing the company’s debt while maintaining a diversified and solid investor base.
The closing and final disbursement of the operation will take place on January 19.
The funds obtained will be used mainly for projects to transform and modernize telecommunications networks, both fixed and mobile, with the aim of improving their energy efficiency. The funds may also be allocated to projects related to the implementation of Telefónica’s Renewable Energy Plan, or the development of digital products and services aimed at saving energy and natural resources, as set out in Telefónica’s Sustainable Financing Framework.
Buyback offer
Regarding the repurchase offer of the hybrids in circulation, the aggregate nominal amount in circulation of the three hybrid bonds to which the offer is directed reaches a total of 2,250 million euros.
The process begins today and is scheduled to end next January 19 at 5:00 p.m. One day later, on January 20, the results will be published.
