Return to search

BoA plans renewables investing with $1bn green bond

The US lender has issued its third and largest green bond, with previous issuances for $500m and $600m in 2013 and 2015, respectively.

Bank of America Corporation has issued a $1 billion green bond to fund renewable energy projects.

This is the largest green bond offer for the US lender and its third in as many years. In 2013, it issued one for $500 million, and issued another for $600 million in May 2016. BoA said it has served as underwriter for a number of other green bond initiatives on behalf of its clients.

“Green bonds are a key way we bring the private sector together to fund clean energy,” BoA vice chairman Anne Finucane said. “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.”

Green bonds have grown in popularity since 2010 as a way to fundraise for projects emphasising environmental sustainability. The Climate Bonds Initiative, a London-based non-profit organisation that monitors the environmental impact of green projects, estimated that $41.8 billion in green bonds were issued in 2015, a significant increase from the $2.6 billion in 2012.

BoA has become one of the most active clean energy advocates over the past decade. It has provided $62 billion in financing for low-carbon and sustainable business activities.

In April, it brought together eight institutional investors to raise capital for innovative finance structures and clean energy investments. The Catalytic Finance Initiative has a goal to raise $10 billion for “high-impact sustainable investments,” according to a statement. Through the initiative, BoA arraned a $204 million green project bond, along with US Bank, to support wind developer Energia Eolica in Peru. It has also helped structure a $100 million facility with Global Alliance for Clean Cookstoves.