Debt evolution
(1) Argentina impact on debt amounts to €274m
(2) Including full T. Deutschalnd shares acquisition (94.1%), partially compensated by the income for the sale of a stake in Pangea
Net financial debt and commitments
Unaudited figures (Euros in millions)
| December 2022 | December 2023 | |
|---|---|---|
| Non-current financial liabilities | 35,059 | 33,360 |
| Current financial liabilities | 4,020 | 3,701 |
| Gross Financial Debt | 39,079 | 37,061 |
| Cash and cash equivalents | (7,245) | (7,151) |
| Current financial assets | (2,431) | (1,066) |
| Non-current financial assets | (4,560) | (3,421) |
| Mark-to-market derivatives adjustment (1) | 780 | 454 |
| Other current assets and liabilities | (244) | (265) |
| Other non-current assets and liabilities | 1,308 | 1,737 |
| Net Financial Debt | 26,687 | 27,349 |
| Lease Liabilities | 8,645 | 8,920 |
| Net Financial Debt including Lease liabilities | 35,332 | 36,269 |
Notes:
(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 2023, Telefónica raised long term financing by €5,296m; €3,422m at the Group and €1,874m equivalent at VMO2.
Financing activities in Q4 23 included:
- In October, Telxius signed a €25m bilateral loan with maturity in Oct-28
- In November, T. Emisiones issued a 10 year €850m green senior bond with maturity in Nov-33 while T. Móviles Chile signed a $71m bilateral loan with maturity in Nov-26
- In December, Telxius signed a two tranche-€145m club deal facility. A €100m term loan and a €45m revolving credit facility, both tranches with maturity of 5 years. Telxius also signed a bilateral credit facility of €75m with maturity of 3 years and two annual extension option, up to a maximum maturity of five years.
After Dec-23, in Jan-24, Telefónica launched a €1,750m green bond that was structured in two senior tranches with maturity tenors of 8 and 12 years (€1,000m and €750m, respectively).
Telefónica financing activity has allowed the Group to maintain a solid liquidity position of €19,531m (€11,315m of undrawn committed credit lines; €11,148m maturing over 12M). As of Dec-23, the Group has covered debt maturities over the next three years and the average debt life stood at nearly 11.6 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 €1,000m as of Dec-23.
Financial debt
Total Financial Liabilities Breakdown
Unaudited figures (Euros in millions)
| December 2023 | |||
|---|---|---|---|
| Bonds and commercial paper | Debt with financial institutions | Other financial debt (including governments) and net derivatives | |
| Total financial liabilities (1) | 85% | 8% | 7% |
(1) Includes positive value of derivatives and other financial debt
Net financial debt plus Lease Liabilities structure by currency
Unaudited figures (Euros in millions)
| December 2023 | ||||
|---|---|---|---|---|
| EUR | BRL | HISPAM | OTHER | |
| Net financial debt plus Lease Liabilities structure by currency | 72% | 18% | 10% | 0% |
Financial expenses
Interest payments rose 46.6% y-o-y to €1,811m in FY 23 mainly due to tax refund collections in Spain in 2022 (+€526m). Debt-related interest payments decreased due to less debt denominated in Brazilian reais, and a robust fixed interest rates position in strong currencies which countered the impact of rising interest rates in these currencies. The effective cost of debt related interest payments (L12M, ex leases) was 3.80% as of Dec-23 (3.96% as of Dec-22).
Note: For further information, please access the January – December 2023 Results Report.
