Commercial, Finance, Sourcing Renewables  -  November 21, 2016

Bank of America issues its largest green bond

Continuing a commitment to help the advancement of renewable energy, Bank of America Corp. has issued its third and largest green bond, for $1 billion in aggregate principal amount. 

Green bonds are classified as "green" for the requirement that capital raised through them be exclusively used for environment-friendly investments. The emerging asset class has been viewed as a fast-growing source of low-cost debt for renewable energy and energy efficiency programs.

"Green bonds are a key way we bring the private sector together to fund clean energy," Bank of America Vice Chairman Anne Finucane said in a Nov. 10 news release announcing the issuance. "Through these types of innovative financial solutions, we are helping our clients create jobs and advance alternative energy sources while also seeing a business return."

In addition to issuing three corporate green bonds over the past three years, Bank of America said it has been the largest underwriter of green bonds on behalf of clients. These efforts are helping to finance low-carbon projects such as renewable energy, mass transportation, green buildings and energy and water efficiency.

In 2013, Bank of America issued the first benchmark-sized corporate green bond — a $500 million offering — and also co-authored the original version of the Green Bond Principles, a voluntary set of guidelines to promote integrity in the development of the green bond market. The company followed up that offering with a $600 million green bond in May 2015. The company's latest green bond is the largest offering to date.

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