Rooftop solar system. Author: Martin Abegglen. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Bank of America Corp (NYSE:BAC) has issued a USD-600-million (EUR 526m) green bond, its second, to finance renewable energy and energy efficiency projects, it said Thursday.
The bond will support projects under BAC’s multi-year environmental business commitment. In 2013 it announced a USD-50-billion, 10-year environmental business initiative to promote low-carbon economic solutions through lending, investing and facilitating capital, providing advice and developing solutions for clients around the world.
“We believe green bonds will play an important role in closing the financing gap for renewable energy, energy efficiency and other lower-carbon projects,” commented chief operating officer Thomas Montag.
According to the Climate Bond Initiative (CBI), some USD 10.5 billion in green bonds have been issued in the first four months of 2015. In 2014, green bond issuance tripled to USD 36.6 billion.
Bank of America Corp’s first USD-500-million green bond was issued in November 2013. With the raised amount, it financed commercial photovoltaic (PV) projects in US and efficiency upgrades to streetlights in Los Angeles.