• Telefónica Deutschland claimed to be the first German telecoms company to have signed a “sustainability-linked loan”, in an effort to link financing costs with its environment, social, and governance (ESG) rating. 

Telefónica Deutschland commits to sustainability loan

Telefónica Deutschland commits to sustainability loan

Source: Telefónica Deutschland

Telefónica Deutschland claimed to be the first German telecoms company to have signed a “sustainability-linked loan”, in an effort to link financing costs with its environment, social, and governance (ESG) rating. This is based on an annual sustainability rating prepared with corporate governance specialist Sustainalytics. The loan is for the amount of €750m and runs until the end of 2026. Telefónica noted that the loan replaces a facility of the same amount that had been due to run until March 2023. The German operating business is developing a habit of using somewhat gimmicky financing: in 2018, it launched a tranche of bonds solely using blockchain technology (Telefónicawatch, #123). However, the operator also exerts considerable energy to meet its sustainability goals (Telefónicawatch, passim).