Telefónica has today successfully placed a senior bond for an amount of 750 million euros, with a maturity date in November 2034 and an annual coupon of 4.3525%.
The issuance has been very well received by institutional investors and it has attracted an order book in excess of €2 billion, which represents more than 2.5 times the expected size. This demand has allowed the terms to be adjusted, significantly reducing the spread over the swap curve to 118 basis points, compared to initial indications in the range of 145–150 basis points.
The investor base has been highly diversified, with around 120 orders received and international investors accounting for around 90% of the total.
The closing and final settlement of the transaction will take place on 27 May.
Today’s transaction follows on from the three transactions completed in the first quarter of this year: a €1.75 billion green hybrid bond issue, structured in two tranches of €900 million and €850 million respectively; a senior bond issuance of 170 million Swiss francs; and a green bond issuance of 1 billion euros.
Telefónica’s financing activity enabled the company to end March with a liquidity position of €17.739 billion, whilst the average maturity of the company’s debt stood at 11.4 years.
