Spanish multinational telecommunications company, Telefónica, has closed a €1 billion green bond issuance, strengthening its funding programme for 2026 and advancing its strategy of proactive debt management supported by a diversified international investor base.
Including the hybrid bond launched in the first half of January, the telecoms group has now placed a total of €2.75 billion in 2026, alongside a CHF170 million issuance in the Swiss market completed earlier this month.
The green bond was priced with a coupon of 3.707%, with demand reaching €3.4 billion from around 200 orders. International investors accounted for 85% of the issuance, reflecting broad global participation. Closing and final settlement of the transaction will take place on 2 February.
In line with the allocation framework used for its recent hybrid bond, Telefónica said the proceeds will be primarily directed towards projects to transform and modernise fixed and mobile telecommunications networks, with a focus on improving energy efficiency. Funds may also support the company’s Renewable Energy Plan, as well as the development of digital products and services aimed at reducing energy consumption and the use of natural resources.
