May 27, 2022 | Posted by MadalineDunn
Telefónica has announced that it has successfully issued its first senior sustainable bond to fund sustainability projects and initiatives amounting to €1 billion ($1.06bn) with a term of nine years. Telefónica has now made five ESG issuances in the last three years totaling €4.25 billion ($4.52bn). The company also says that the issue was oversubscribed by around 2.5 times, comprising some 150 orders, with a “broadly diversified investor base.”
According to the company, it will allocate the funds to environmental projects “related to the transformation of networks and their impact on energy efficiency” and social projects. Specifically, with regards to its environmental focus, the telco will use the funds to improve energy efficiency through the transformation of copper networks to fiber networks and the deployment of 5G technology. On the social side, it will allocate funding to the deployment and improvement of broadband connectivity in “undeserved rural areas,” with a view to boosting inclusive connectivity; and stimulating entrepreneurship and employment generation.
The company outlined that the issuance of the bond aligns with its sustainability goals and United Nations Sustainable Development Goals (SDGs). Likewise, it said it is working on the “tangible goal of achieving zero net emissions by 2040,” with an interim deadline of 2025 in Brazil, Germany and Spain (for Scope 1+2). Alongside this, the company said it also aims to help customers avoid 12M tCO2 per year by 2025 with digital solutions, and achieve zero waste by 2030.
