Debt evolution
Net financial debt and commitments
Unaudited figures (Euros in millions)
| December 2023 | March 2023 | |
|---|---|---|
| Non-current financial liabilities | 33,360 | 34,122 |
| Current financial liabilities | 3,701 | 3,867 |
| Gross Financial Debt | 37,061 | 37,989 |
| Cash and cash equivalents | (7,151) | (6,391) |
| Current financial assets | (1,066) | (1,571) |
| Non-current financial assets | (3,421) | (3,666) |
| Mark-to-market derivatives adjustment (1) | 454 | 390 |
| Other current assets and liabilities | (265) | (231) |
| Other non-current assets and liabilities | 1,737 | 1,962 |
| Net Financial Debt | 27,349 | 28,482 |
| Lease Liabilities | 8,920 | 8,526 |
| Net Financial Debt including Lease liabilities | 36,269 | 37,008 |
Notes:
(1) Includes the market value of cash flow hedges related to debt instruments and the market value of economic hedges associated with gross employee benefit commitments.
Financing activity
In Q1 24, Telefónica raised long term financing by €4,008m; €3,133m at the Group and €877m equivalent at VMO2.
Financing activities in Q1 24 included:
- In January, T. Emisiones launched a €1,750m green bond that was structured in two senior tranches with maturity tenors of 8 and 12 years (€1,000m and €750m, respectively) while Coltel signed three COP-denominated bilateral loans for an aggregate amount of €133m equivalent and maturities in Jan-26 and Jan-27.
- In March, Telefónica launched a green hybrid bond of €1,100m and 8.1 years reset date together with a tender offer for the purchase of existing hybrid bonds with first call date in Dec-24. T. Europe accepted the purchase in an aggregate principal amount of €1,097m. Telefónica also signed a 10-year bilateral loan of €150m.
- Also in March, VMO2 signed a two year extension of its GBP750m Term Loan A, now with maturity in Sep-29.
After Mar-24, in Apr-24, T. Móviles Chile signed a CLP50,000m bilateral loan with maturity in Apr-27 and VMO2 issued two senior secured notes of €600m and USD750m, both with maturities in Apr-32.
Telefónica financing activity has allowed the Group to maintain a solid liquidity position of €19,337m (€11,375m of undrawn committed credit lines; €10,438m maturing over 12M). As of Mar-24, the Group has covered debt maturities over the next three years and the average debt life stood at nearly 11.7 years.
Telefónica and its holding companies continued their issuance activity under the Promissory Notes and Commercial Paper Programmes (Domestic and European), maintaining an outstanding notional balance of €1,000m as of Mar-24.
Financial debt
Total Financial Liabilities Breakdown
Unaudited figures (Euros in millions)
| March 2024 | |||
|---|---|---|---|
| Bonds and commercial paper | Debt with financial institutions | Other financial debt (including governments) and net derivatives | |
| Total financial liabilities (1) | 85% | 8% | 7% |
(1) Includes positive value of derivatives and other financial debt
Net financial debt plus Lease Liabilities structure by currency
Unaudited figures (Euros in millions)
| March 2023 | ||||
|---|---|---|---|---|
| EUR | BRL | HISPAM | OTHER | |
| Net financial debt plus Lease Liabilities structure by currency | 73% | 17% | 11% | -1% |
Financial expenses
Interest payments declined 20.9% y-o-y to €447m in Q1 24 mainly due to calendar effects and extraordinary payments in Q1 23. Debt-related interest payments also decreased due to lower interest rates in Brazil and a robust fixed interest rates position in hard currencies which countered the impact of rising interest rates in these currencies. The effective cost of debt related interest payments (L12M, ex leases) was 3.51% as of Mar-24 (3.87% in Mar-23).
Note: For further information, please access the January – December 2023 Results Report.
