Verizon completes final allocation of its fourth $1 billion green bond

Rhea-AI Summary

Verizon has released its Green Bond Impact Report, detailing nearly $1 billion in net proceeds from its fourth green bond issued in March 2022. This report confirms the full allocation of funds towards virtual power purchase agreements (VPPAs), contributing to 850 megawatts (MW) of new renewable energy capacity. Verizon aims to achieve 50% renewable energy sourcing by 2025 and 100% by 2030, supported by $4 billion in green bonds. Since 2019, it has signed 26 VPPAs for approximately 3.3 gigawatts (GW) of expected capacity, with operational projects exceeding 800 MW.

Positive

• Allocation of nearly $1 billion from the fourth green bond to VPPAs.
• Commitment to 50% renewable energy sourcing by 2025 and 100% by 2030.
• Operational projects exceed 800 MW of renewable energy capacity.

Negative

• None.

NEW YORK, Feb. 10, 2023 (GLOBE NEWSWIRE) -- Today, Verizon issued its Green Bond Impact Report, outlining the full allocation of the nearly $1 billion of net proceeds from its fourth green bond, which was issued in March 2022.

In February 2019, Verizon became the first U.S. telecom company to issue a green bond and remains a leader in the industry with the allocation of four green bonds.

“As one of the largest corporate green bond issuers in the U.S., and as a leader in green finance and diversity in the capital markets with our Green Financing Framework, we are proud that our actions are contributing to greener power grids across the nation,” said Matt Ellis, executive vice president and chief financial officer at Verizon. “As a result of our $4 billion in green bonds, we are on track to exceed our target to source or generate renewable energy equivalent to 50 percent of our total annual electricity consumption by 2025, and we have set a new target to source renewable energy equivalent to 100 percent of our annual electricity usage by 2030.”

Verizon fully allocated the net proceeds of its fourth green bond entirely to virtual power purchase agreements (VPPAs). These VPPAs are for an aggregate of 850 megawatts (MW) of new renewable energy generating capacity across seven states, of which about 71 percent is wind energy generating capacity and 29 percent is solar energy generating capacity.

Included in the full allocation are two new long-term VPPAs with Apex Clean Energy for an aggregate of up to nearly 300 megawatts (MW) of renewable energy capacity. These projects include a wind project 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 (MISO) regional market, which is expected to be operational by the middle of 2024.

Since 2019, Verizon has signed 26 VPPAs for nearly 3.3 gigawatts (GW) of expected renewable energy capacity. To date, seven renewable energy facilities relating to Verizon's VPPAs for an aggregate of more than 800 MW of capacity are operational.

Verizon’s portfolio of VPPAs is part of Citizen Verizon, the company’s responsible business plan for economic, environmental and social advancement. The Green Bond Impact Report can be found on the company’s investor relations site at https://www.verizon.com/about/investors/green-bond-reports.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $136.8 billion in 2022. 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.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:
Eric Wilkens
eric.wilkens@verizon.com
201-572-9317
@ericwilkens

FAQ

What is included in Verizon's Green Bond Impact Report?

The report outlines the allocation of nearly $1 billion in proceeds from its fourth green bond, focusing on virtual power purchase agreements for renewable energy capacity.

What targets has Verizon set for renewable energy sourcing?

Verizon aims to source 50% of its total annual electricity consumption from renewable energy by 2025 and 100% by 2030.

How much renewable energy capacity has Verizon committed to through VPPAs?

Verizon has signed agreements for approximately 3.3 gigawatts of expected renewable energy capacity since 2019.

What percentage of the new renewable energy capacity is from wind and solar?

71% of the new renewable energy capacity from the allocated proceeds is wind energy, while 29% is solar energy.

What is the significance of Verizon's green bond issuance?

Verizon is one of the largest corporate green bond issuers in the U.S., contributing to greener power grids and sustainable energy practices.