Bank of America, N.A. has issued its first social bond, highlighting the company’s commitment to deploying capital to address global issues outlined in the United Nations Sustainable Development Goals (SDGs). The bond’s proceeds will refinance the company’s investments in affordable housing and community development financial institutions (CDFIs).
With this offering, Bank of America becomes the first U.S bank to issue a social bond. The net proceeds will be used to help address pressing issues that impact low-to-moderate-income neighborhoods in the United States.
“Bank of America is committed to help grow, rebuild and revitalize the communities we serve,” said Bank of America Vice Chairman Anne Finucane. “Increasingly, investors are showing the desire to align their investments with their values. Through this social bond, we are giving investors the opportunity to direct their investments to the bank’s community development activities, including affordable housing.”
Over time, given increased market demand, these types of investment products have the potential to unlock significant amounts of capital to address the biggest issues facing society today.
Bank of America has been a leader in using the bond market to support the SDGs. In May 2018, Bank of America Corporation issued its fourth green bond, becoming the first U.S. financial institution to issue four benchmark green bonds, raising a total of $4.35 billion for renewable energy projects since 2013. The company has also been the all-time leading global underwriter of green bonds from 2007 through 2018.
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 1,800 lending centers, 2,200 Merrill Edge investment centers and 1,500 business centers; approximately 16,300 ATMs; and award-winning digital banking with more than 36 million active users, including over 26 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 owners 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 more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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A-T Connell, Bank of America