Telefónica Chile issues $500 million bond to adjust for risk in non-strategic markets | America

Telefónica Chile issued $500 million in bonds maturing in 2031 and an annual interest rate of 3.537%, as reported on the Santiago de Chile Stock Exchange.

The bond amount will be used to pay for the group’s other obligations and other company expenses.

Debt refinancing is part of the strategy that Telefónica is implementing to adjust its exposure in the non-strategic markets of Latin America grouped into Hispam.

Specifically, the Chilean subsidiary was the subject of the process of creating a joint fiber subsidiary with KKR, in which Telefónica retained a 40% stake and reduced debt by US$457.689 million (€400 million).

The Chilean subsidiary is the company that contributes practically half of the profitability of the Hispam unit, having, according to the latest results presented, amounted to $902.791 million (€789 million) out of $1,877.67 million (€1,641 million) of gross profit before depreciation announced About Hispam.

debt strategy. Telefónica has changed its debt strategy and has also increased the weight of the local Latin American currencies.

Thus, it had a weight of 26% of total net debt and rents as of September compared to 15% a year earlier.

In addition, the operator took advantage of lower debt refinancing rates of US$6,186.81 million (€5,407 million) between January and September to achieve an average debt life of 13.8 years after the significant debt reduction ensuing sales. Telxius Towers and merger in the UK.

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