Telefónica, through its subsidiary Telefónica Emisiones, S.A.U., has today carried out its inaugural bond issue on the Australian market for a total amount of 700 million Australian dollars (approximately 426 million euros at the current exchange rate).
This is the first time that Telefónica has issued bonds in Australian dollars. This transaction is in line with the company’s aim to seek out the best financing options. It achieves the objective of opening up a new investor base and diversifying its sources of financing globally.
The issue consists of two tranches: one in the amount of AUD 300 million Australian dollars (around 183 million euros), due on June 30, 2032, pays a coupon of 5.962% per annum, payable semi-annually, and is issued at par (100%); and another in the amount of 400 million Australian dollars (approximately 244 million euros), due on June 30, 2036, pays a coupon of 6.552% per annum, payable semi-annually, and is issued at par (100%).
The transaction has been well received by the market, with the order book three times oversubscribed and high-quality investor demand. Telefónica has hedged the Australian dollar risk using a derivative instrument payable in euros, resulting in a cost similar to that of a euro-denominated issue, with the benefit of diversifying the investor base.
The settlement and closing date are scheduled for June 30, 2026. Application will be made for the notes to be listed on the Australian Securities Exchange.
Today’s transaction builds on the four transactions completed in 2026: an issue of a green hybrid bond amounting to 1,750 million euros, structured in two tranches of 900 million and 850 million respectively; an issue of a senior bond worth 170 million Swiss francs; an issue of a green bond worth 1,000 million euros; and an issue of a senior bond worth 750 million euros.
