Debt detail and evolution

Debt evolution

Debt evolution January-March 2023

Net financial debt and commitments

Unaudited figures (Euros in millions)

December 2022March 2023
Non-current financial liabilities35,05933,978
Current financial liabilities4,0204,207
Gross Financial Debt 39,07938,185
Cash and cash equivalents (7,245)(7,337)
Current financial assets (2,431)(2,236)
Non-current financial assets (4,560)(4,483)
Mark-to-market derivatives adjustment (1)780982
Other current assets and liabilities(244)(235)
Other non-current assets and liabilities 1,3081,567
Net Financial Debt 26,68726,443
Lease Liabilities 8,6458,618
Net Financial Debt including Lease liabilities35,33235,061


(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

Telefónica raised €1,857m long term financing in Q1, of which €1,150m at the Group and €707m equivalent at VMO2.

  • In Jan-23, Telefónica launched a green hybrid bond of €1,000m and 7.25 years reset date together with a tender offer for the purchase of existing hybrid bonds with first call date in Sep-23 and Mar-24. T. Europe accepted the purchase in an aggregate principal amount of €1bn. In Feb-23, Telefónica signed a 10-year bilateral loan of €150m. VMO2 signed a USD 750m sustainable-linked term loan with maturity in Mar-31.

Telefónica financing activity has allowed the Group to maintain a solid liquidity position of €21,391m of which €11,819m correspond to undrawn committed credit lines (€11,029m maturing over 12M) and maintain long debt maturities with 2023-2026 gross debt maturities average at €3.0bn, -58% lower vs four-year average at Mar-17. As of Mar-23, the Group has covered debt maturities over the next three years and the average debt life stood at nearly 13.2 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 €992m as of Mar-23.

Financial debt

Total Financial Liabilities Breakdown

Unaudited figures (Euros in millions)

March 2023
Bonds and commercial paperDebt with financial institutionsOther financial debt (including governments) and net derivatives
Total financial liabilities (1) 84% 9%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)

March 2023
Net financial debt plus Lease Liabilities structure by currency70% 17% 13%0%

Financial expenses

Interest payments increased 19.2% y-o-y to €667m in Q1 23 due to seasonality effects and extraordinary payments. The effective cost of debt related interest payments (L12M) was 3.87% as of Mar-23.

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