FTTH is the Greenest Network in the Market and Telefonica’s investors show confidence in its continuing FTTH projects.
The first of its kind in the telecom industry, Telefonica issues a green-bond amounting to euro 1billion for a term of five years. The transaction came after the presentation of Telefonica’s sustainable financing framework to the telecom market. The final book stood at 5.2 billion, resulting in an oversubscription of more than 5 times.
In an event marked with the participation of 310 investors, the transactions were well received by those from the institutional segment. Telefónica continues to strengthen its financial position with long-term financing at historically low rates while extending the average life of its debt. The settlement and closing date are scheduled for February 5, 2019.
The proceeds obtained from the transactions will serve to finance projects devoted to increasing the company’s energy efficiency thanks to the network transformation from copper to fiber optics in Spain and could be used, in any case, for existing projects (no older than three years) and future projects.
Compared to the legacy copper networks, an all-optical fiber to the home (FTTH) network is 85% more energy efficient. Telefonica says the FTTH networks have saved 208 GWh in the last three years, which means avoiding the emission into the atmosphere of 56,500 tons of CO2, equivalent to the carbon captured by more than 900,000 trees. In addition, Telefonica says the deployment of fiber networks allows it to shut down a copper central office daily that in turn helps to recycle all the material.
The projects that migrate from copper to fiber and the use of renewable energy allows Telefónica to consolidate its telecommunications network as one of the most sustainable in the market in terms of energy and CO2. Telefonica said, globally more than 50% of the electricity used by it comes from renewable sources.
Telefonica has already shifted to 100% renewable energy in Europe and Brazil and targets 2030 to shift all global operations to 100% renewable energy. Telefonica could reduce its CO2 emissions by 28% in three years, with the commitment to cut them by 30% to 2020 and 50% by 2030, in line with the Paris Agreement.
Telefonica is already 100% renewable in Europe and Brazil, thus approaching its goal of being renewable in all countries by 2030