Telefónica releases €1 billion green bond

Telefónica recently closed a successful green bond deal worth €1 billion. This transaction marks a significant milestone for the company, following the hybrid bond issued earlier in January, as well as the CHF170 million issued in the Swiss market. In total, Telefónica has raised €2.75 billion in 2026, showcasing its commitment to proactive debt management.

The green bond deal was closed with a coupon of 3.707%, attracting a substantial order book of up to €3.4 billion from approximately 200 investors. The strong interest from investors reflects the company’s solid reputation and the appeal of its sustainability initiatives. Notably, around 85% of the issuance was secured from international investors, highlighting Telefónica’s global investor base.

The final settlement for the green bond deal is scheduled for February 2nd, signaling the official completion of the operation. The funds raised from this green bond, similar to the hybrid bond from earlier, will primarily be allocated to projects aimed at transforming and modernizing telecommunications networks. These projects will focus on enhancing energy efficiency in both fixed and mobile networks, aligning with Telefónica’s commitment to sustainability.

Moreover, the funds may also support the implementation of Telefónica’s Renewable Energy Plan and the development of innovative digital products and services designed to conserve energy and natural resources. This strategic allocation of funds reflects Telefónica’s Sustainable Financing Framework, which outlines the company’s commitment to sustainable business practices and investments in environmentally friendly initiatives.

The success of Telefónica’s green bond issuance underscores the company’s strong financial standing and investor confidence. By attracting a diverse and robust investor base, Telefónica has demonstrated its ability to access capital markets effectively and fund sustainable projects that contribute to its long-term growth and environmental objectives.

Overall, Telefónica’s green bond issuance represents a significant step towards achieving sustainability goals while also driving innovation and modernization in the telecommunications sector. As the company continues to prioritize sustainable practices and initiatives, investors can expect to see further progress in Telefónica’s commitment to environmental responsibility and long-term value creation.