Telefónica issues a sustainable hybrid bonus for 750 million euros

Madrid, November 15, 2021.Telefónica has successfully issued a sustainable hybrid bonus for an amount of 750 million euros and has announced, in parallel, an repurchase offer on three hybrid bonds that begins today and is planned to close on November 25.With both operations, Telefónica continues to proactively manage its hybrid capital base.

The hybrid bonus issued has been very well received by institutional investors, with a book composed of more than 175 orders and a widely diversified investment base and more than 90% participation of international investors.The bonus has 6.5 -year -old rescue date and has been closed with a definitive cost of 2,875%.

With the funds obtained, Telefónica will finance or refinance projects with positive environmental and social impact in Spain, Germany and/or Brazil, which will contribute to the Sustainable Development Goals (SDGs) 9 (build resilient infrastructure, promote inclusive and sustainable industrialization and encourageInnovation), SDG 8 (promote inclusive and sustainable economic growth and employment) and SDG 7 (guarantee access to affordable, safe, sustainable and modern energy for all).

Environmental projects will focus on continuing the transformation of the network, replacing copper with fiber, 85% more energy efficient and less breakdowns.In this way, Telefónica reinforces its commitment from zero net in 2040 (including the value chain).To achieve this, it will continue to reduce the 1 and 2 scope emissions with the 1.5ºC scenario, 70% globally in 2025 and as an intermediate objective it will begin that same year to neutralize the remaining emissions in its main markets.

Social projects will focus mainly on bringing broadband mobile connectivity to non -connected areas and/or with poor connection in rural areas.The objective is to contribute to reduce the so -called digital gap so that all people can benefit from the advantages of the Internet and digitalization.Projects are also contemplated to boost entrepreneurship, startups and SMEs through Open Innovation initiatives that favor economic development and job creation.

After a total of three placements in the last two years, Telefónica today reinforces its commitment to sustainable financing, with the focus on social and environmental projects.Pioneer of the sector, the company launched the first green bonus in the industry in January 2019, per amount of 1.000 million euros, and a year later, in January 2020, he issued the first green hybrid, 500 million.Finally, in February 2021 it became the first Telco company to issue a sustainable hybrid bonus, thus incorporating social projects into its financing work, and with which it obtained 1.Additional 000 million euros.Telefónica thus adds, in just over two years, a volume of sustainable financing in the 3 3 bond market.250 million euros, the largest accumulated amount of the telecommunications sector on a global scale.

Commitment to sustainability

Telefónica has been committed to sustainability for two decades, and all its actions revolve around the UN SDGs, as also reflected in its framework of sustainable financing, verified by Sustainal andtics.Sustainability is a transverse element to the entire group and focuses on three pillars:

Thus, with today's broadcast, Telefónica advances in the integration of sustainability in the business strategy and, once again, its commitment to the different interest groups, contributing to social welfare while generating value for its shareholders.