Bank of America Announces Floating Rate Notes Issuance Referencing BSBY

April 21, 2021 at 8:30 AM Eastern

Bank of America, N.A. announced today that it issued a $1 billion six-month floating rate bank note referencing the one-month tenor of the Bloomberg Short-Term Bank Yield IndexSM (BSBY) to multiple investors earlier this week. BSBY adheres to the International Organization of Securities Commissions’ (IOSCO) Principles for Financial Benchmarks and measures the average yields at which large, global banks access U.S. dollar unsecured wholesale funding. It is dynamic, credit sensitive and reflects marginal funding cost at overnight, one-month, three-month, six-month and twelve-month tenors.

“We are pleased to be in a position to help lead the market’s transition away from LIBOR,” said Bank of America Treasurer Andrei Magasiner. “The development of a robust alternative term rate, such as BSBY, is an important development for traditional banking products and for our clients.”

“We are continuously looking for ways to innovate and provide creative solutions to the market,” said Andrew Karp, Head of Investment Grade Capital Markets. “We have seen interest from US market participants for a credit sensitive rate alongside SOFR in the transition away from LIBOR. We believe BSBY is a viable alternative and we expect to see more transactions referencing credit sensitive rates going forward.”

Forward-Looking Statements

Certain information contained in this news release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in any of our other subsequent Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,400 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 40 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.


Investors May Contact:

Lee McEntire, Bank of America
Phone: 1.980.388.6780

Jonathan Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112


Reporters May Contact:

Jerry Dubrowski, Bank of America
Phone: 1.646.855.1195 (office) or 1.508.843.5626 (mobile)

Christopher P. Feeney, Bank of America
Phone: 1.980.386.6794

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