DGAP-News: Telefónica Deutschland AG (O2)

Munich, 11 January 2018

Telefónica Deutschland: Announcement of promissory note loan as a combination of traditional placement and a Blockchain tranche

Telefónica Deutschland Holding AG, Landesbank Baden-Württemberg (LBBW) and DZ Bank AG today announce the placement of a promissory note loan with a target volume of EUR 200 million, including a tranche that is exclusively marketed by LBBW which is using Blockchain technology consistently.

For the first time, the transaction will demonstrate the capabilities of the Blockchain technology in combination with a traditional financing process and a larger number of investors. With the innovative use of this digital technology, all participants are promoting the development of more efficient and transparent processes in the German economy.

Blockchain allows direct and secure financial transactions in real time. All transactions are recorded in data blocks and stored in encrypted form on multiple servers. This technique makes financial transactions traceable and prevents manipulation.

Prior to the transaction interested lenders have already implemented the necessary technical infrastructure. The regulatory requirements for a promissory note loan are fulfilled in parallel to the Blockchain transaction.

The Blockchain tranche of the Euro-denominated promissory note loan has a tenor of slightly above one year. The traditional component is expected to have a tenor of seven to fifteen years.

With the placement of the dual-tranche promissory note Telefónica Deutschland is demonstrating its innovation potential and at the same time further diversifying its financing structure.

For further details please refer to our website https://www.telefonica.de/investor-relations-en.html

More information:

Telefónica Deutschland Holding AG
Investor Relations
Georg-Brauchle-Ring 23-25
D-80992 München
T +49 (0)89 2442-1010
F +49 (0)89 2442-2000
E ir-deutschland@telefonica.com