Telefónica refinances its main syndicated loan of 5.5 billion with sustainable criteria

Telefónica has refinanced with sustainable criteria a syndicated loan consisting of 5,500 million euros with a five-year term under the credit modality revolving.

The operation has had a 30% oversubscription and the participation of 30 entities, including Natwest as agent and BNP Paribas as sustainable coordinator, and with Clifford Chance as legal advisor, according to a subsequent statement from the firm.

In a note, the company has underlined that the loan is now linked to criteria such as the reduction of greenhouse gas emissions and the increase of women in executive positions.

In more detail, the first of the indicators establishes an absolute reduction in Scope 1 and 2 emissions (direct and of the energy used by the company) by 70% and 80% in 2030, as explained. Telefónica is thus making progress towards zero net emissions in the main markets in 2025 and 2040, including the entire group and its value chain.

For its part, regarding the second indicator, Telefónica undertakes that women occupy 37% of executive positions in the company in 2027 with the goal of reaching 40% in 2030.

The contract has two annual maturity extensions, which would allow Telefónica the possibility of extending the financing up to seven years, which might expire in 2029.

Telefónica had so far 3,250 million of green financing and the CEO of the firm, Ángel Vila, underlined at the end of November the intention that the operator would reach 10,000 million euros in the coming years.

Thus, with this operation, the firm would reach 8,750 million euros of sustainable financing, which represents 87.5% of its commitment, as well as 39.83% of its net debt.

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