Verizon prices its third $1 billion green bond
08 September 2021 - 10:30PM
Verizon Communications Inc. (NYSE, Nasdaq: VZ) settled its third
green bond offering of $1 billion on September 3, shortly after the
full allocation of its second green bond toward renewable energy
commitments. The net proceeds of its third green bond are expected
to also be allocated entirely toward renewable energy as the
company continues to enter into long-term virtual power purchase
agreements (VPPAs) which support the construction of solar and wind
power facilities.
“In less than two years, Verizon has become one of the leading
corporate buyers of renewable energy in the U.S., entering into
fourteen VPPAs for nearly 1.9 gigawatts of renewable energy
capacity,” said Matt Ellis, Verizon’s Executive Vice President and
Chief Financial Officer. “These investments are consistent with our
commitments in support of the U.N. Sustainable Development Goals,
to source or generate renewable energy equivalent to 50% of our
total annual electricity consumption by 2025, and to be net-zero in
our operational emissions by 2035 (scope 1 and 2 emissions).
Furthermore, this transaction aligns with our commitment to
advancing racial and social equity in the capital markets by
partnering with women- and minority-owned firms.”
Verizon has added underwriter selection criteria focused on
sustainability and diversity commitments to its updated Green
Financing Framework. The framework states that a financial
institution will be eligible for selection as an underwriter for
green financing instruments only if it meets at least one of the
following criteria: [1] it has established clear and impactful
commitments in support of the U.N. Sustainable Development Goals
and/or is a diverse-owned firm and/or [2] has a core mission of
promoting Diversity, Equity and Inclusion. Based on these criteria
and long-standing trusted relationships, Verizon selected three
minority- and women-owned firms as lead underwriters for the launch
of the green bond: Loop Capital Markets, Ramirez & Co., Inc.
and Siebert Williams Shank.
In addition, Verizon appointed Morgan Stanley as one of its four
lead underwriters. Morgan Stanley has been a leader in
sustainability for over a decade, being the first major U.S.-based
global bank to commit to net-zero financed emissions by 2050, while
also championing Diversity, Equity and Inclusion with initiatives
such as the Institute for Inclusion and the Multicultural
Innovation Lab. All four lead underwriters shared equal
responsibility in bringing this successful transaction to the
market.
Year to date, Verizon has paid approximately $20 million in
underwriting fees to minority- and women-owned firms, including
$4.5 million for this third green bond and more than $14 million in
fees related to Verizon’s $25 billion debt offering in March, with
the latter transaction holding the record for the most fees paid to
minority- and women-owned firms in a single transaction.
“Loop Capital is thrilled to partner
with Verizon as an active lead underwriter on its third green bond
issuance. With this transaction, and the innovations it has
incorporated into its sustainability framework, Verizon continues
to demonstrate that it is at the forefront of the industry and a
true leader in ESG,” said Jim Reynolds, Chairman and CEO, Loop
Capital Markets. “Verizon continues to embody the most powerful
elements of global corporate citizenship by taking responsibility
in protecting the environment and by promoting and advancing the
capabilities of minority- and women-owned firms as lead
underwriters.”
“We are proud of being selected for
our role on this offering, reflecting our own commitments such as
our net-zero financed emissions goal and our shared core value of
promoting diversity, equity and inclusion. We applaud Verizon in
its remarkable sustainability journey, including their
science-based emissions reductions targets to reduce carbon
emissions and the expansion of their Green Financing Framework to
include new criteria for selection of underwriters. Their third
consecutive green bond issuance was met with strong and broad
global investor participation ensuring a successful outcome,” said
Melissa James, Vice Chair and Head of Morgan Stanley’s ESG Center
of Excellence.
“Congratulations to Verizon on the completion of its third green
bond. We are honored to have been appointed as a lead underwriter
for this important transaction, which enabled us to showcase our
capabilities and compete at the highest levels. Verizon
continues to demonstrate leadership and vision in its inclusion of
DEI firms. As we celebrate our 50th anniversary in 2021, we
recognize that it is opportunities such as this that have enabled
us to grow our business over the years,” said Sam Ramirez Jr.,
Senior Managing Director, Ramirez & Co., Inc.
“With the issuance of its third consecutive $1 billion green
bond, Verizon once again demonstrates its commitment to the
principles of racial diversity and economic inclusion, while also
continuing to be a standard bearer for corporate environmental
responsibility,” said Chris Williams, Chairman of Siebert Williams
Shank. “We thank Verizon for providing significant economic
support and the opportunity for its diverse banking partners to
gain substantive professional experience, which enables our firms
to enhance the breadth and quality of the capital markets services
that we deliver to all of our clients.”
This capital market transaction aligns
with Verizon’s long-standing commitment to drive both environmental
and social progress as part of its responsible business plan,
Citizen Verizon, empowering the technology leader to deliver on its
mission to move the world forward by addressing pressing societal
issues.
Verizon Communications Inc. (NYSE,
Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s
leading providers of technology, communications, information and
entertainment products and services. Headquartered in New York City
and with a presence around the world, Verizon generated revenues of
$128.3 billion in 2020. The company offers data, video and voice
services and solutions on its award-winning networks and platforms,
delivering on customers’ demand for mobility, reliable network
connectivity, security and control.
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Media contact: Kim
AncinKimberly.ancin@verizon.com908.801.0500
Eric Wilkenseric.wilkens@verizon.com201.572.9317
Verizon Communications (NYSE:VZ)
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