Bank of America has issued a green bond for $600 million to advance renewable energy and promote energy efficiency. This is the company’s second green bond. In November 2013, Bank of America issued its first green bond for $500 million.
The funds from Bank of America’s green bonds are used specifically to finance renewable energy projects such as wind, solar and geothermal energy. Funds will also be used to finance energy efficiency projects such as lighting retrofits, district heating, co-generation, and building insulation in residential, commercial and public properties.
The proceeds from the bank’s green bonds are used to support a subset of assets that qualify for Bank of America’s 10-year, $50 billion environmental business initiative to help address climate change, reduce demands on natural resources and advance lower-carbon economic solutions.
Proceeds from the first green bond issued by Bank of America were used to finance projects such as the retrofitting of streetlights from traditional high pressure sodium to new LED technology in Los Angeles and the installation of commercial photovoltaic systems.