Verizon Issues its Fifth $1 Billion Green Bond Tranche

Verizon has issued green bonds worth $5 billion since 2019


Telecommunications company Verizon Communications has announced its fifth green bond offering for $1 billion, with the net proceeds directed toward renewable energy investments.

The proceeds from Verizon’s fourth tranche of green bonds were directed fully to virtual power purchase agreements (VPPAs).

These VPPAs are for an aggregate of 850 MW of new renewable energy generating capacity across seven states, of which about 71% is wind energy generating capacity and 29% solar.

The total allocation includes wind projects for up to 80 MW in the ISO New England regional market, which is expected to be operational by the end of 2024, and a wind project for up to 200 MW in the Midcontinent Independent System Operator regional market, which is expected to be operational by the middle of 2024.

Verizon has signed 26 VPPAs for nearly 3.3 GW of expected renewable energy capacity since 2019. Seven renewable energy facilities relating to Verizon’s VPPAs for an aggregate of more than 800 MW of capacity are operational to date.

Verizon has issued five green bonds worth $5 billion since 2019.

Verizon’s Executive Vice President and Chief Financial Officer, Tony Skiadas, said he is proud of the company’s steps toward ambitious environmental and social impact goals. He also stated that Verizon is one of the largest corporate green bond issuers in the United States and a leader in green finance and diversity in the capital markets with its green financing framework.

The company seeks to engage underwriters for its green bond transactions that have established clear and impactful commitments supporting the United Nations’ sustainable development goals, are diverse-owned firms, or have a core mission of promoting diversity, equity, and inclusion.

In line with this pledge, Verizon partnered with Wells Fargo Securities and four minority- and women-owned firms as lead underwriters for its fifth green bond offering, including CastleOak Securities, Loop Capital Markets, Ramirez & Co., and Siebert Williams Shank.

Corporates in the U.S. installed nearly 19 GW of onsite and offsite solar capacity cumulatively till June 2022. This includes 25 leading U.S.-based companies like Meta, Amazon, and Walmart installing 14% of the overall capacity.

The passage of the Inflation Reduction Act is also one of the major contributing factors to this shift, as it will support both onsite and offsite solar markets. Solar Energy Industries Association had pointed out that the Act is expected to boost the onsite market by 24% until 2027, while the offsite markets will likely grow by 51% over the next five years.