(Bloomberg) — Verizon Communications Inc. is back to the green bond market with a $1 billion offering, its fourth transaction since the largest U.S. wireless service provider first started raising funds earmarked for environmental projects in 2019.
The telecom giant is selling the bonds in one tranche maturing in 30 years, according to a person with knowledge of the matter. It may yield between 1.65 percentage points and 1.7 percentage points above Treasuries, said the person, who asked not to be identified as the details are private.
This will be the fourth $1 billion green bond transaction from the phone company since it first tapped the market in 2019, according to data compiled by Bloomberg. Verizon plans to allocate an amount equal to the net proceeds to fund renewable energy facilities or purchase of renewable energy, the person said.
Global sales of green bonds — the largest category of sustainable debt by dollar volume — reached a record $514 billion last year, from about $234 billion in 2020, according to data compiled by Bloomberg. Climate Bonds Initiative, a London-based nonprofit, estimates issuance could reach fresh highs of as much as $1 trillion by the end of this year and up to $5 trillion by 2025.
Read more: Green Bonds Still Have Long Way to Go to Dent Climate Crisis
Bank of America Corp., Loop Capital Markets LLC, Ramirez & Co. and Siebert Williams Shank & Co. are managing the bond sale, the person said.
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