Bank of America issued its second green bond worth $600 million yesterday.
Bank of America Corp issued yesterday its second green bond. The green bond worth around $600 million in combine principal amount and it is also a part of $70 billion multi-year strategy that is envisioned to endorse energy efficient activities a renewed energy. The American bank declared the news on Thursday on its own newsroom page. Market Watch reported the news first.
Since two years, the American Bank declared that the company has introduced ten year initiative worth of $50 billion that will quicken the evolution to a lower carbon economy. This initiative includes, facilitating, lending and investing capital and offering customers consultation across the globe. A parallel $20 billion worth of initiative was proclaimed in 2007.
Chief Operating Officer of BofA, Thomas Montag said, “We believe green bonds will play an important role in closing the financing gap for renewable energy, energy efficiency and other lower-carbon projects…The market for green bonds is expanding rapidly and issuing our own green bonds is one way we are helping to meet that growing demand,”
BofA has been actively widening and developing its emphasize on issuance of green bond. The very first green bond by the company was issue in 2013, worth of $500 million in cumulative principal amount. It clears the bank’s entry in the industry but also the company’s initial benchmark sized bond. The company also provides the guidelines of encoring the market of green bon by the name of Green Bond Principles.
It was announced that the amount from the issue were utilize to fund the projects that satisfy the company’s environmental corporate commitments. It includes the LED technology installment in Los Angeles in place of previous streetlights, together with the solar power installation for majority of Unite States customers. Renewable energy plans include offering funds for systems and equipment, and enabling the renewable sources use.
As per Bloomberg New Energy Finance, Bank of America Merrill Lynch was the top green bonds underwriter.
In different news, BofA has assembled a new group to initiate a private fund generator group for firms that do not mean go for IPO. The news was release after BofA declare its move in a memo on Thursday. The bank means to generate money for private firms and has named Warren Fixmer and Sachin Aggarwal as the head of the group. This new unit will be known as Strategic a Private Capital Solutions.
In BofA internal memo, J.D Moriarity said, “I am pleased to announce the formation of a dedicated team within the Americas Equity Capital Markets group to help our clients source private capital alternatives. Sachin Aggarwal and Warren Fixmer have been appointed co-heads of the Strategic & Private Capital Solutions Group,”