TELEFÓNICA, S.A. (herein after "Telefónica") as provided in article 228 of the Spanish Stock Market Act (Ley del Mercado de Valores), hereby reports the following

Yesterday TELEFÓNICA, S.A., through its wholly-owned subsidiary TELEFÓNICA EMISIONES, S.A.U., under its US Debt Registered Program filed with the United States Securities and Exchange Commission (SEC) on May 13, 2015, has launched an issue of Notes guaranteed by TELEFÓNICA, S.A. in an additional aggregate principal amount of 500 million US dollars, fully fungible with its existing 5.213% Senior Notes due March 8, 2047. This issuance constitutes a reopening of the 30 year Notes issued in an amount of 2,000 million US dollars, on March 8, 2017.

The settlement date is scheduled to be on April 28, 2017.

Madrid, April 25, 2017