BofA Raises $500 Million for Green and Renewable Energy Projects24/7 Wall St, November 21, 2013
Bank of America Corp. (NYSE: BAC) is having a bit of an unusual bond sale, and it is something we might have overlooked had it been anything else but this. The bank has issued a $500 million bond issue that is called a “green bond” by name. Issuing the green bond is meant to support Bank of America’s commitment to advance renewable energy initiatives and to promote energy efficiency.
Proceeds are earmarked specifically for the financing of green investments such as renewable energy and energy efficiency projects. The three-year fixed-rate bond is a senior bond in its capital structure.
Some banks have committed to green energy, renewable energy and energy efficiency. This is said to be part of Bank of America’s 10-year effort to create a $50 billion environmental business initiative to help address climate change, reduce demands on natural resources and also advance lower-carbon economic solutions.