Bank of America Corporation announced today the issuance of its fourth and largest green bond for $2.25 billion in aggregate principal amount, furthering the company’s commitment to deploying capital to advance sustainable projects. The bond’s proceeds will support increasing renewable energy generation.
With this offering, Bank of America becomes the first U.S. financial institution to issue four corporate green bonds, raising a total of $4.35 billion for renewable energy projects since 2013. The company has also been the leading underwriter of green bonds globally since 2007, underscoring its continued leadership in addressing climate change by financing the transition to a low-carbon, sustainable economy.
“We are engaging every part of our company to address today’s biggest global challenges – including solutions to help transition to lower-carbon energy sources and address unsustainable demands on our natural resources,” said Bank of America Vice Chairman Anne Finucane. “Green bonds are an important tool for the private sector to finance clean and alternative energy sources, as well as other environmentally-minded activities, at competitive market rates. We’ve seen tremendous demand in the debt capital markets, with all four of our green bonds significantly oversubscribed, and we are responding to that demand.”
Supporting client needs, leading in green bond underwriting
Bank of America Merrill Lynch (BofAML) is the leader in green bond underwriting. According to the Environmental Finance green bond database, BofAML has been the leader in green bond underwriting globally since 2007. Additionally, Bloomberg league tables rank BofAML as the leading corporate and government green bond underwriter since 2007. In 2017 alone, BofAML underwrote $6.5 billion (pro-rata basis) in green bonds on behalf of 41 unique clients. Since 2007, BofAML has underwritten more than $27 billion on behalf of more than 100 clients.
"By providing transparency into how the proceeds will be used, green bonds also offer a relatively new way for fixed income investors to drive social and environmental change through the debt capital markets,” said Finucane.
Deploying capital for a sustainable future
Through its scale, global reach and deployment of capital, Bank of America is bringing together investors, expanding financing solutions and market opportunities, and supporting sustainable projects and communities.
Since 2007, Bank of America has provided more than $87 billion in financing for low-carbon, sustainable business activities. The company’s $125 billion environmental business goal demonstrates its commitment to the environment and supporting sustainable, low-carbon businesses through lending, investing, capital raising, advisory services and developing financing solutions for clients around the world.
Learn more about Bank of America’s commitment to the environment at bankofamerica.com/environment.