The company achieves its goal of opening a new investor base and diversifying its sources of financing globally
The Spanish company Telefónica, through its subsidiary Telefónica Emisiones, has launched its inaugural bond issue in the Australian market for 700 million Australian dollars (approximately 426 million euros). This transaction aligns with the company's search for new financing alternatives, thus achieving its objective of opening a new investor base and diversifying its funding sources globally.
The issue consists of two tranches: one for 300 million Australian dollars, maturing on June 30, 2032, with an annual coupon of 5.962%, payable semi-annually; and another for 400 million Australian dollars, maturing on June 30, 2036, with an annual coupon of 6.552%, also paid semi-annually.
The transaction was well received by the market, with an order book three times oversubscribed and strong investor demand. Telefónica has hedged its Australian dollar risk using a derivative instrument payable in euros, resulting in a cost similar to that of a euro-denominated issuance, with the benefit of diversifying its investor base.
Telefónica notes that this transaction follows four others completed in 2026: a €1.75 billion green hybrid bond issuance, structured in two tranches of €900 million and €850 million, respectively; a Swiss franc senior bond issuance of €170 million; a €1 billion green bond issuance; and a €750 million senior bond issuance.
Read the news on the Telefónica website
