Debt detail and evolution

Debt evolution

Debt evolution January-September 2023

Net financial debt and commitments

Unaudited figures (Euros in millions)

December 2022September 2023
Non-current financial liabilities35,05934,239
Current financial liabilities4,0203,968
Gross Financial Debt 39,07938,207
Cash and cash equivalents (7,245)(7,819)
Current financial assets (2,431)(1,602)
Non-current financial assets (4,560)(4,349)
Mark-to-market derivatives adjustment (1)780569
Other current assets and liabilities(244)(180)
Other non-current assets and liabilities 1,3081,711
Net Financial Debt 26,68726,537
Lease Liabilities 8,6458,821
Net Financial Debt including Lease liabilities35,33235,358


(1) Includes the market value of cash flow hedges related to debt instruments and the market value of economic hedges associated with gross employee benefit commitments.

Financing activity

In 9M 23, Telefónica raised long term financing by €4,134m; €2,260m at the Group, mainly including a €1bn green hybrid bond -7.25 years, a 10-year bilateral loan of €150m, a UF 3m bond (maturity in Jul-28, launched by T. Móviles Chile), a USD 129m bilateral loan (signed by T. Móviles Chile) and a €750m green hybrid bond -8 years. In 9M 23, Telefónica repurchased hybrids with NC Mar-24 and partially the NC date Dec-23. In addition, Telefónica raised €1,874m equivalent at VMO2 (USD 750m sustainability-linked term loan -maturity Mar-31, which was followed by a re-tap of USD 500m and €700m sustainability-linked syndicated term loan with maturity in Oct-31).

Telefónica financing activity has allowed the Group to maintain a solid liquidity position of €20,772m (€11,351m corresponding to undrawn committed credit lines; €11,161m maturing over 12M). As of Sep-23, the Group has covered debt maturities over the next three years and the average debt life stood at nearly 12.3 years.

Telefónica and its holding companies continued their issuance activity under the Promissory Notes and Commercial Paper Programmes (Domestic and European), maintaining an outstanding notional balance of €991m as of Sep-23.

Financial debt

Total Financial Liabilities Breakdown

Unaudited figures (Euros in millions)

September 2023
Bonds and commercial paperDebt with financial institutionsOther financial debt (including governments) and net derivatives
Total financial liabilities (1) 84% 8%8%

(1) Includes positive value of derivatives and other financial debt

Net financial debt plus Lease Liabilities structure by currency

Unaudited figures (Euros in millions)

September 2023
Net financial debt plus Lease Liabilities structure by currency70% 18% 12%0%

Financial expenses

Interest payments increased 10.2% y-o-y to €1,284m in 9M 23 due to extraordinary payments. Excluding this impact, debt-related interest payments decreased due to lower debt denominated in Brazilian reais and a solid fixed interest rate position in strong currencies that allowed to neutralise the rise in interest rates in these currencies. The effective cost of debt related interest payments (L12M, ex leases) was 3.61% as of Sep-23

Note: For further information, please access the January – September 2023 Results Report.