DEBT DETAIL AND EVOLUTION

LEVERAGE RATIO

 

January-Septembrer 2020 Net Financial Debt Evolution

See this information in accesible format

 

 

Net financial debt and commitments

Unaudited figures (Euros in millions)

  December 2019 Septembrer 2020

Notes:

(1) Includes assets and liabilities defined as net financial debt including Lease liabilities for UK, El Salvador and Costa Rica, that are classified as non-current assets and disposal groups classified as held for sale and liabilities associated with non-current assets held for sale.

- In September 2020, net financial debt includes a positive value of the derivatives portfolio for a net amount of €2,178m, €4,386m included as financial liabilities and €6,563m included as financial assets.

Non-current financial liabilities 43,288 42,861
Current financial liabilities 9,076 9,677
Gross Financial Debt 52,364 52,539
Cash and cash equivalents (6,042) (5,913)
Current financial assets (3,118) (3,235)
Non-current financial assets (4,292) (5,589)
Mark-to-market adjustment by cash flow hedging activities related to debt (388) (345)
Other current assets and liabilities (1,192) (1,073)
Other non-current assets and liabilities 413 292
Net Financial Debt 37,744 36,676
Lease Liabilities 7,379 6,316
Net Financial Debt including Lease liabilities (1) 45,123 42,992

 

FINANCING ACTIVITY

Telefónica, in the current low-interest rate environment, re-financed in 9M 20 €16,716m (€10,429m at the group and €6,287m at the future JV of O2 with VMED) of its debt (excluding commercial paper and short-term bank loans), whichallowed the Group to maintain a solid liquidity position and to further extend debt maturities. As of the end of September 2020, the Group has covered debt maturities over the next two years. The average debt life was extended to 10.9 years, from 10.5 years in December 2019.

Financing activities in Q3 20

  • In July, T. Emisiones completed a 20 year issuance of €500m with a coupon of 1.864%
  • Also in July, Colombia Telecomunicaciones, S.A. ESP. launched a bond for $500m maturing in 10 years with a coupon of 4.95%

Throughout 9M 20, Telefónica Group obtained funding amounting to €108m (9M 19: €302m) by extending payment terms with suppliers or the factoring firm.

Telefónica, S.A. 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 €1,537m as of September 2020.

Undrawn, committed credit lines with different credit institutions amounted to €13,277m as of September 2020 (€12,383m maturing in over twelve months), which combined with the cash equivalents position and current financial assets, placed liquidity at €22,425m1.

1. Liquidity not including proceeds from equalisation payment and dividend recap upon UK JV completion

 

 

FINANCIAL DEBT

Total financial liabilities breakdown

Unaudited figures (Euros in millions)

  Septembrer 2020
  Bonds and commercial paper Debt with financial institutions Other financial debt (including governments) and net derivatives
Total financial liabilities (1) 94% 9% -2%
(1) Includes positive value of derivatives and other financial debt.

 

Net financial debt structure by currency

Unaudited figures (Euros in millions)

  Septembrer 2020
  EUR LATAM GBP USD
Net financial debt structure by currency 63% 15% 20% 2%

 

FINANCIAL EXPENSES

Interest payments decreased by 16.1% y-o-y to €1,056m in 9M 20, mainly due to debt reduction. The effective cost of interest payments over the last 12 months stood at 3.07% as of September 2020 (excluding the effect of IFRS 16: 3.15%).

NOTE: For further information, please access the January – Septembrer 2020 Results Report PDF document [848 KB]