Telefónica issued its first sustainable bond

Telefónica, a Spanish company in the telecommunications sector with a strong presence in Latin America and the Caribbean, has issued its first senior sustainable bond for an amount of 1,000 million euros (1,050 million dollars at the time of the transaction). Including this issuance, there are now five placements in ESG format that Telefónica has made in the last three years, since the launch of the first green bond in the telecommunications industry at the beginning of 2019.

The funds will be used to finance investments in green and social projects, which may be newly created or already completed (not more than two years old). The green projects covered by these funds are aimed at improving energy efficiency thanks to the transformation of copper networks towards fiber networks and the deployment of 5G technology. Regarding social projects, the company seeks to allocate financing to accelerate the deployment and improvement of broadband connectivity in rural areas with the aim of promoting inclusive connectivity on the one hand, and stimulating entrepreneurship and jobs generation, on the other.

The issuance, oversubscribed by nearly 2.5 times, has a term of 9 years maturing in May 2031, and a coupon of 2.592% annual.