Telefonica announced today it had sold more than 90 million shares of treasury stock to professional investors, raising EUR975 million in the process, as it continues with its debt reduction plans.

In a statement, the operator said the “accelerated bookbuilding” was a response to market interest in recent weeks after a good operational performance in the second half of 2012.

At the same time, Telefonica is keen to whittle down its enormous debt and hang on to its investment grade credit ratings.

Spain’s biggest telecoms company is aiming to reduce its net debt to less than EUR47 billion in 2013. At the close of 2012, net debt stood at EUR51.3 billion.

The treasury share package accounts for just under 2 per cent of Telefonica’s share capital.

The sale, handled by Goldman Sachs, had the immediate effect of lowering Telefónica’s share price. At the close of business on Monday, the share price was €11.24, which fell to €10.85 on Tuesday morning trading. The treasury stock was sold at €10.80 per share.

The Spanish firm said the bookbuilding operation represents an increase in Telefónica’s equity of EUR31 million.