Verizon to raise US$1bil in its sixth green bond since 2019

The telecommunications giant sold bonds in one portion, 30-year securities yielding 1.15 percentage point above US Treasuries. — Bloomberg

New York: Verizon Communications Inc has borrowed US$1bil from the green-bond market for the sixth time since 2019.

The telecommunications giant sold bonds in one portion, 30-year securities yielding 1.15 percentage point above US Treasuries, according to a person with knowledge of the matter. Initial talks were in the area of 1.4 percentage point, said the person, who asked not to be identified as the details were private.

Proceeds will be used to fund eligible green investments, which may include renewable energy facilities or the purchase of renewable energy, said the person.

A representative for Verizon declined to comment.

Verizon has raised US$1bil in the green-bond market every year since it first issued such debt in 2019.

Sales volume in the US sustainable-bond market is showing signs of rebounding this year after a nearly 50% slump in 2023 following political backlash. Sustainable-bond sales – including green bonds – saw the busiest January on record.

Verizon hired minority-owned firms Loop Capital Markets, Samuel Ramirez & Co and Siebert Williams Shank & Co as the primary underwriters alongside Citigroup Inc and Morgan Stanley. The issuer is one of the few corporate borrowers that includes smaller firms as lead advisers on a deal.

Last year, it included the three minority dealers – in addition to CastleOak Securities and Wells Fargo & Co – when it raised US$1bil in a 10-year transaction.

Others borrowing from the investment-grade debt market on Tuesday include Marriott International Inc and HCA Healthcare Inc.

Blue-chip firms are expected to raise more than US$50bil in new deals this week. — Bloomberg

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