On January 29, Telefónica successfully launched its first green bond issue, amounting to 1 billion euros and a term of five years. The transaction, which is also the first green bond issuance in the telecommunications sector, takes place after the presentation of the company’s sustainable financing framework to the market. It is also the first bond issue of a Spanish company in 2019.
The transaction was very well received by institutional investors, whose demand allowed the coupon to be fixed at 1,069%, up to 25 basis points below the initial price indications. The final paid premium is about 3 basis points, significantly below the average emissions of the year. The final book stood at 5.2 billion, resulting in an oversubscription of more than 5 times. It is worth noting the high involvement of green investors, with a participation close to 50%, which helps diversify the investment base. In total, more than 310 investors have participated, of which more than 80% are international investors.
Telefónica continues to strengthen its financial position with long-term financing at historically low rates while extending the average life of its debt. The settlement and closing date is scheduled for February 5, 2019.
To read the full press release, click here.