US utility giant NextEra Energy has emerged as the world's largest issuer of hybrid bonds, raising funds through equity-like debt to finance the massive investment needed to meet surging power demand from AI data centers.
June 2026 · NextEra Energy
AI Power Boom Catapults NextEra to the Top of the Hybrid Bond Market
The Florida utility sold three hybrid bonds in a single week of June 2026 — one with a novel structure — vaulting past Volkswagen and BP to become the world's largest issuer of hybrid debt, as surging AI data-center electricity demand drives a wave of capex financing.
#1
World's largest hybrid bond issuer
3
Hybrid bonds sold in one week of June 2026
$67B
Pending stock-swap acquisition of Dominion Energy
Climbing to the Top of the Hybrid Market
NextEra surpassed the previous largest issuers to claim the No. 1 spot.
Why It Drives the Funding
AI Data Centers
Explosive power demand
→
Surging Capex
Wind, solar, storage, nuclear
→
Hybrid Issuance
Flexible debt + equity capital
Hybrids defer interest, carry long / near-perpetual maturities (e.g. 30NC10) and call options — flexible capital rated around BBB/Baa2.
Investors See Upside
Growth story tied to AI power demand
Long-term EPS and dividend growth
Battery storage (BESS) expansion
Potential direct data-center contracts
Risks to Watch
Regulatory approval risk on Dominion deal
Rising leverage from surging capex
Complex terms: interest deferral & step-ups
Possible impact on liquidity and returns
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