Verizon Raises $12 Billion in Global Hybrid Bond Sale

Verizon Communications Inc. (VZ) has issued $4 billion in hybrid bonds in the US dollar investment-grade debt market for the first time, completing a $12 billion global fundraising round. The telecom giant previously sold the equivalent of $8 billion in hybrid bonds in other currencies over the past six months, according to Bloomberg.

Issue Details

• Total hybrid bonds issued: $12 billion.
• US tranche: $4 billion.
• Previous issuances: $8 billion equivalent in other currencies (e.g., euro, sterling) over six months.
• Bond type: Hybrid bonds, combining debt and equity features.

What Are Hybrid Bonds?

Hybrid bonds are long-term debt instruments classified as equity on the balance sheet, helping improve leverage ratios without diluting shareholders. They typically offer higher yields than conventional bonds.

Context

The move is part of Verizon's strategy to strengthen its capital structure and fund investments in 5G networks and infrastructure. The company tapped multiple currency markets to take advantage of favorable conditions.

What This Means for Investors

The issuance offers investors an opportunity for higher yields than traditional bonds with moderate credit risk, given Verizon's investment-grade rating. It also reflects the company's flexible access to global capital markets.