Telefónica has placed its latest green bond worth €1.75 billion ($1.91bn).

Split into two tranches, the first is an eight-year €1 billion ($1.1bn) transaction, which Telefónica notes has received 'significant demand', with more than 85 percent of investors from outside of Spain.

The oversubscription has meant the carrier has increased its initial target of €750 million ($816m). The final spread improved from 135 base points to 105 base points, with the final coupon set at 3.7 percent.

The second, is a 12-year €750 million ($816m) tranche, with 95 percent of investors coming from international investors.

Robust demand meant that conditions improved from an initial spread of 165 base points to the final spread of 135 base points, confirmed the telco. The coupon settled at 4 percent.

The closing and final settlement of the transaction will take place on January 24, 2024.

Last year, Telefónica launched three green bonds, with the most recent being a 10-year €850 million green bond in November.

Prior to this, the telco launched a €1 billion ($1.1bn) and €750 million ($816m) in January 2023 and August of the same year, respectively.

Last January, Telefónica said its funds would be used towards green projects that ‘seek to achieve greater energy efficiency,' and will largely consist of shutting down obsolete equipment and the deployment and improvement of the network infrastructure through the deployment of more energy-efficient fiber optics and 5G infrastructure, as well as the procurement of renewable energy.

Telefónica also stated that the green bond aligns with its commitment to sustainable financing, aiming to have around 40 percent of total funding by 2026 linked to Environmental, Social, and Governance (ESG) criteria.