Bank of America has become the first US bank to issue a social bond. At the end of January, the bank issued a $500 million four-year (non-call three) bond that priced at 78 basis points over US Treasuries. The proceeds will be used to finance the bank’s current portfolio of affordable housing and lending to Community Development Finance Institutions (CDFIs).
Suzanne Buchta, managing director and global head of ESG Capital Markets at Bank of America Merrill Lynch, notes that the bank’s experience in issuing green bonds made the process relatively smooth.
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