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HomeLatest NewsTelefónica places 1,000 million in green subordinated obligations

Telefónica places 1,000 million in green subordinated obligations

Date: May 31, 2023 Time: 22:19:00

The Telefónica company has closed this Wednesday an issue of green subordinated perpetual obligations of 1,000 million euros with an excess demand that has allowed the coupon to be reduced to 6.125%, compared to the 6.75% that started with the release of losers.

The company has gone to the market after publishing a reward offer for two hybrid bonds whose value adds up to a total import of 2,250 million and which ends on January 31. This operation is the second time that Telefónica renews a financial instrument of this type in the last three months, since in November it also issued green subordinated perpetual obligations for a total of 750 million euros to replace the amortization of other million 621 bonds.

In fact, Telefónica has already offered the holders of its subordinated obligations maturing in September 2023 the repurchase of this instrument, with a 3% coupon, only this time it has improved its offer to 99,500 euros for every 100,000 euros m interest accrued and not paid compared to the 98,250 euros offered in November. Likewise, the offer is also directed to another higher coupon bond (5.875%) maturing in March 2024

Thus, Telefónica continues to proactively manage the company’s hybrid capital base, an asset that pays higher interest than an ordinary issue, but which is accounted for at 50% as capital by debt rating agencies. In addition, it continues to expand its green financing with the aim of reaching 10,000 million euros of debt of this type.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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