Eight institutional investors have joined Bank of America (BoA)'s partnership to commit billions of dollars of capital to clean energy projects around the world.
BoA launched the Catalytic Finance Initiative (CFI) in 2014 with a $1 billion pledge and a goal of raising $10 billion for innovative finance structures and clean energy investments. Now, with the addition of investment banks, an insurance company and finance institutions, the initiative can commit $8 billion for “high-impact sustainable investments”, according to a statement.
The new partners include Massachusetts Mutual Life Insurance Company, Crédit Agricole CIB, the European Investment Bank, HSBC Group, the International Finance Corporation, AllianceBernstein, Babson Capital Management and Natixis Group subsidiary Mirova.
Aligned Intermediary (AI), an investment matchmaker, has also joined the partnership. AI is an organisation launched last year that finds suitable and risk-adjusted clean energy investments for long-term institutional investors.
“There are very interesting companies and projects out there […] and these companies need capital,” AI chief executive Peter Davidson previously told sites publication Low Carbon Energy Investor. “I really look for us to be that matchmaker between those very exciting companies and projects and the great pools of capital in the long term.”
BoA has already supported two projects through the CFI. The US bank arranged a $204 million green project bond, in partnership with the New York Green Bank, for wind developer Energia Eolica in Peru. BoA has also helped structure a $100 million facility with the Global Alliance for Clean Cookstoves.
Outside of the finance initiative, BoA has been an active clean energy investor. According to BoA, it's invested more than $53 billion in financing low carbon activities. After raising $600 million in green bonds last May, BoA increased its commitment for environmental investments from $50 billion to $125 billion by 2025.