Green Bond Fact Sheet

Issuer Name: Telefónica

Date: 20-Feb-2019

Issue date: 05-Feb-2019 Maturity date: 05-Feb-2024 Tenor: 5Issuer Name

Telefónica

Amount Issued

EUR1bn (USD1.14bn)

Country of risk

Spain

CBI Database

Included

Issuer Type1

Non-financial
corporate

Bond Type

Senior unsecured

Green Bond Framework

Framework

Second party opinion

Sustainalytics

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emissionvehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☒ Other☐ Adaptation &resilience☒ ICT☐ Industry: process

Issue details
ReportingTelefónica intends to provide allocation and impact reporting annually on the company’s
website. The allocation report will comprise data on the eligible projects financed throughthe bonds, including the amounts allocated, the bond proceeds allocated per eligible
category and the remaining balance of unallocated proceeds. With regards to the impact
report, Telefónica will disclose a comprehensive list of relevant KPIs for each use of proceeds
category.

Company information

Telefónica is a telecommunication and digital services company which offers connectivity,
digital services and technological solutions, operating in Spain, the United Kingdom,
Germany and Latin America. It is one of the largest telecom companies in the worldFirsts, records andcertificationsFirst green bond by an ICT issuer in 2019 and first ever by a European one (the only
previous ICT issuers were from USA and Taiwan)

Proceeds description

Telefónica is expected to use the proceeds to finance and refinance, in whole or in part,
existing and future projects that promote energy efficiency and the reduction of GHGemissions within its own operations and those of its clients.
The Framework defines eligibility criteria in the following areas: 1) Energy Efficiency ofTelefónica Network Infrastructure; 2) Renewable Energy; 3) Energy Efficiency: Digital
Solutions for the Environment; 4) Digital Inclusion, Access for all through an Affordable
Infrastructure; 5) Employment Generation and Economic Growth.

Climate Bonds view

There has been very limited green bond issuance from the ICT sector, so it’s definitely astep forward to see a large green bond come to market. Vodafone was the first telecoms
provider to release a green bond framework, and CBI expects issuance in the sector toincrease in 2019 which will also benefit investors looking to diversify their green and ESG
based portfolios.

Underwriters
Deal comments

1Credit Rating

N/A

Pricing summary

Final book at 5.2bn - over 5 times oversubscribed

Investors summary

More than 310 investors have participated, of which more than 80% are international
investors. Green investors made up almost 50%

Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign