UniCredit announced today that it has helped close a €750m ESG-linked revolving credit facility for longstanding core client Telefónica in Germany, acting as sole Coordinator, Sustainability Structuring Agent, Documentation and Facility Agent, Bookrunner and Mandated Lead Arranger.
The deal, which comes as Telefónica Germany looks to underline its commitment to its sustainability strategy, creates an ESG-linked facility with margin adjustments based on sustainability rating assessments provided by external agency Sustainalytics.
- The facility was efficiently and rapidly syndicated within 2 weeks to the existing banking group.
- UniCredit was appointed as sole Coordinator – a major success given that Telefónica’s previous transaction saw UniCredit appointed as one of three Coordinators.
- UniCredit also received the Sustainability Structuring Agent mandate, based on the bank’s profound and detailed sustainability advisory during the preparation stages, which distinguished it from other banks.
- The transaction again underscores UniCredit’s leading position for sustainability-linked loans in Germany and EMEA – marking an important milestone in the bank’s strong and successful relationship with Telefónica Germany.
“ESG-linked loans are becoming an increasingly popular component of corporate financing. Since they finance the general corporate purposes of a company and are not tied to individual projects, companies can underpin and link their commitment to sustainability and ecological responsibility with their activities.
This is a relatively new field of financing in Germany, however, there is enormous growth potential and increasing attention, reflecting in a significant number of transactions with leading corporates.”Jan Kupfer, member of the Management Board of Directors of UniCredit Bank AG
Telefónica Germany is one of the leading integrated telecommunications providers, majority-owned by Spanish telecommunications group Telefónica, S.A. – one of the world’s largest telecommunications providers headquartered in Madrid.