One of the world’s leading financial institutions, Bank of America, has announced a $2.25 billion green bond to support clean energy projects.
In a media statement released by the bank, it said that this was the fourth and largest green bond, furthering the company’s commitment to deploying capital to advance sustainable renewable energy projects.
With this offering, Bank of America has become the first U.S. financial institution to issue four corporate green bonds, raising a total of $4.35 billion for renewable energy projects since 2013, the company said in the statement.
The bank has also been the leading underwriter of green bonds globally since 2007, underscoring its continued leadership in addressing climate change by financing the transition to a low-carbon, sustainable economy. According to the bank’s portfolio, since 2007, it has provided more than $87 billion in financing for low-carbon, sustainable business activities.
“Green bonds are an important tool for the private sector to finance clean and alternative energy sources, as well as other environmentally-minded activities, at competitive market rates. We’ve seen tremendous demand in the debt capital markets, with all four of our green bonds significantly oversubscribed, and we are responding to that demand,” Bank of America’s vice chairman Anne Finucane, said in a media statement.
Of late, green bonds have assumed global significance as these financial instruments help mobilize resources for funding green projects.
Recently, Mercom also reported that Sindicatum Renewable Energy, a Singapore-headquartered renewable energy company, raised $39.3 million through the sale of rupee-denominated international green bonds.
In 2017, the Asian Development Bank (ADB) announced that it raised approximately $47 million, from a new issue of offshore Indian rupee-linked bonds in an effort to finance climate change mitigation and adaptation projects in India.
Moreover, the Indian Railways Finance Corporation (IRFC) also raised $500 million recently through the issuance of its first green bond on the London Stock Exchange’s new International Securities Market. The bond was oversubscribed by more than three times, indicating strong support from global investors.
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Ankita is an editor at MercomIndia.com where she writes and edits clean energy news stories and features. With years of experience in the news business, Ankita has a nose for news and an eye for detail. Prior to Mercom, Ankita was associated with The Times of India as a copy editor for the organization’s digital news desk. She holds a Bachelor’s degree in Psychology from Delhi University and a Postgraduate Diploma in journalism. More articles from Ankita Rajeshwari.