Telefónica has today successfully placed a senior bond for an amount of 750 million euros with a 10-year maturity and an annual coupon of 3.941%.
The issuance, with a maturity date in June 2035, has been very well received by institutional investors, reaching an order book of €2.5 billion, which represents more than three times the expected size. This has allowed for a significant tightening of the conditions, reducing the spread over the swap curve by approximately 38 basis points compared to the initial indications. The investor base has been highly diversified, with around 150 orders received and international investors accounting for approximately 90% of the total.
The closing and final settlement of the transaction will take place on June 25th.
Today’s transaction is part of the company’s objective of proactively managing debt while maintaining a diversified and solid investor base and gives continuity to the two operations closed last January, a €1bn senior debt issue and the refinancing of the €5,5bn sustainable syndicated loan.
At the end of March, Telefónica had covered debt maturities for the next three years, with an average debt maturity of 11.5 years.
