Telefónica has completed the refinancing of its main syndicated facility of €5.5 billion, which is now linked to two sustainability objectives. That is to say, the company´s interest rates will depend on the compliance with an environmental objective, the reduction of direct and indirect greenhouse gas emissions; and a social objective, relating to the increase in the percentage of women in executive positions – both of which will be verified annually. With the refinancing of this line, Telefónica is making further progress in integrating sustainability into its business strategy and, once again, demonstrates its commitment to its various stakeholders, contributing to social well-being while generating value for its shareholders.
The first objective responds to the greatest environmental challenge that society is and will be facing in the coming decades, the mitigation of climate change, where Telefónica has a dual commitment: to reduce its own carbon footprint and, at the same time, to facilitate digital solutions aimed at reducing emissions in other sectors. This KPI calls for an absolute reduction in Scope1 and 2emissions of 70% by 2025 and continues the company’s goal of reducing these emissions by 80% by 2030. These targets are aligned with the highest climate ambition: to limit the temperature increase to below 1.5ºC and have been validated by the Science Based Targets initiative. Telefónica is moving towards zero net emissions in the main markets by 2025 and by 2040, including the entire group and its value chain.
The second objective, relating to the increase of women in executive positions in the company, aims to improve decision-making in the company’s executive bodies by incorporating a diverse set of perspectives, as well as to be more competitive by increasing female participation in important sectors of the economy, especially in fields related to engineering and science. This target envisages 37% of women in executive positions in the company by 2027. This way, Telefónica is moving towards 40% of executive positions being held by women by 2030.
The transaction was supported by around 30 entities, with an oversubscription of more than 30%, including Natwest as Agent and BNP Paribas as sustainable coordinator, with legal advice from Clifford Chance.
The core Clifford Chance team was led by Banking & Finance partner Epifanio Pérez, together with B&F lawyers Ignacio Magariños and Gabriel Miranda.