Verizon Communications (VZ+0.1%) has priced its third green bond offering of $1B, after its second green bond reached full allocation.
Proceeds from the third green bond, like that of the preceding offering, will go entirely towards renewable energy commitments. Verizon has been pushing towards long-term virtual power purchase agreements (VPPAs) to support construction of wind and solar power facilities.
Morgan Stanley will serve as one of four lead underwriters for the green bond. Verizon has also tapped three women- and minority-owned financial firms as lead underwriters: Loop Capital Markets, Ramirez & Co and Siebert Williams Shank. The selections were made as per the telecoms company's updated green financing framework, under which underwriters need to meet certain diversity- and sustainability-focused criteria.
Matt Ellis, Verizon's Executive Vice President and Chief Financial Officer, said: "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. 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."