Telefónica Raises €1.75B in Sustainable Bond Issuance

TL;DR

**Telefónica just raised €1.75 billion through a sustainable bond, boosting its cash for future plans.**

AI Summary

Telefónica, S.A., through its subsidiary Telefónica Emisiones, S.A.U., has successfully issued a sustainable bond in the Euro market, raising a total of 1,750 million euros. This issuance was split into two tranches: 1,000 million euros due January 24, 2032, with a 3.698% annual coupon, and 750 million euros due January 24, 2036, with a 4.055% annual coupon. The settlement is scheduled for January 24, 2024, and the bonds will be listed on the Irish Stock Exchange. This matters to investors because it shows Telefónica's ability to secure significant financing at competitive rates, which can support its operations and strategic initiatives, potentially leading to future growth and stability.

Why It Matters

This bond issuance provides Telefónica with substantial capital to fund its operations and investments, potentially strengthening its financial position and supporting long-term growth initiatives. It also signals the company's commitment to sustainable financing.

Risk Assessment

Risk Level: low — This filing reports a successful debt issuance, which provides capital to the company and is generally a positive event, indicating market confidence.

Analyst Insight

A smart investor would view this as a positive sign of Telefónica's financial health and ability to access capital markets, potentially indicating stability and capacity for future investments. It might be worth reviewing the company's use of proceeds for these bonds to understand their strategic impact.

Key Numbers

• €1.75B — Total Bond Issuance (Represents the total capital raised by Telefónica through this sustainable bond.)
• €1.0B — First Tranche Amount (The larger portion of the bond, maturing in 2032.)
• €750M — Second Tranche Amount (The smaller portion of the bond, maturing in 2036.)
• 3.698% — First Tranche Coupon (The annual interest rate Telefónica will pay on the 2032 tranche.)
• 4.055% — Second Tranche Coupon (The annual interest rate Telefónica will pay on the 2036 tranche.)

Key Players & Entities

• Telefónica, S.A. (company) — registrant and guarantor of the bond
• Telefónica Emisiones, S.A.U. (company) — wholly-owned subsidiary that launched the bond issuance
• 1,750 million euros (dollar_amount) — aggregate principal amount of the bond issuance
• 1,000 million euros (dollar_amount) — principal amount of the first tranche
• 750 million euros (dollar_amount) — principal amount of the second tranche
• January 24, 2032 (date) — maturity date of the first tranche
• January 24, 2036 (date) — maturity date of the second tranche
• 3.698% (dollar_amount) — annual coupon for the first tranche
• 4.055% (dollar_amount) — annual coupon for the second tranche
• January 24, 2024 (date) — scheduled settlement and closing date

Forward-Looking Statements

• Telefónica's debt-to-equity ratio will slightly increase in the next quarter due to this new bond issuance. (Telefónica, S.A.) — medium confidence, target: Q1 2024
• The successful issuance of a sustainable bond will enhance Telefónica's reputation among ESG-focused investors. (Telefónica, S.A.) — high confidence, target: Ongoing

FAQ

Filing Documents

• tef-issueofsustainablebond.htm (6-K) — 22KB
• image_0a.jpg (GRAPHIC) — 4KB
• 0000814052-24-000004.txt ( ) — 28KB

From the Filing

Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January, 2024 Commission File Number 001-09531 Telefnica, S.A. (Translation of registrant's name into English) Distrito Telefnica, Ronda de la Comunicacin sn, 28050 Madrid, Spain +34 91-482 87 00 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F X Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) Yes No X Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) Yes No X Telefnica, S.A. TABLE OF CONTENTS Item Sequential Page Number 1. Telefnica Issue of Sustainable Bond EMTN 2 TELEFNICA, S.A. (Telefnica) in compliance with the Securities Market legislation, hereby communicates the following OTHER RELEVANT INFORMATION Today, Telefnica, S.A., through its wholly-owned subsidiary Telefnica Emisiones, S.A.U., has launched in the Euro market under its Guaranteed Euro Programme for the Issuance of Debt Instruments (EMTN Programme) an issuance of Notes guaranteed by Telefnica, S.A. in an aggregate principal amount of 1,750 million euros. This issue was split into two tranches. The first tranche, amounting 1,000 million euros, due on January 24, 2032, pays an annual coupon of 3.698%, issued at par. The second tranche, amounting 750 million euros, due on January 24, 2036, pays an annual coupon of 4.055%, issued at par. The settlement and closing date is scheduled for January 24, 2024. Application will be made for the Notes to be listed on the regulated market of the Irish Stock Exchange plc, trading as Euronext Dublin. An amount equivalent to the net proceeds will be allocated towards eligible investments in accordance with 2023 Sustainable Financing Framework, including transformation and modernization of telecommunications networks based on high-speed fixed and mobile networks, including supporting infrastructure and software to improve the energy efficiency of the networks, as well as the implementation of Telefnica's Renewable Energy Plan, and development and implementation of digital products and services with a focus on saving energy andor natural resources. Madrid, January 17, 2024 Legal Notice This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the securities referred to herein and shall not constitute an offer, solicitation nor sale in any jurisdiction in which such offer, solicitation or sale is unlawful - including but not limited to the United States, its territories and possessions (the United States), Australia, Canada or Japan. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (Securities Act), as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration requirements of the Securities Act and in accordance with applicable state securities laws. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Telefnica, S.A. Date January 17, 2024 By s Pablo de Carvajal Gonzlez Name Pablo de Carvajal Gonzlez Title Secretary to the Board of Directors

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View this 6-K filing on SEC EDGAR