Bank of America Corporation’s $2 Billion Equality Progress Sustainability Bond Offering

Davis Polk advised the lead manager, sole book-runner and representative of the several underwriters in the offering.

Bank of America Corporation executed the offering of $2 billion aggregate principal amount of 0.981% fixed-to-floating-rate senior notes, due September 2025. During the floating rate period, the notes bear interest by reference to SOFR, compounded daily over each quarterly interest payment period.

The proceeds from the sale of the notes will fund Eligible Social Assets and Eligible Green Assets designed to advance racial equality, economic opportunity and environmental sustainability, the first offering of its kind in the financial services industry. Eligible Social Assets include financing and investments in specified target markets that seek to help reduce inequalities for Black and Hispanic communities in the United States. Eligible Green Assets include financing, leasing and investments that promote a transition to a low-carbon economy. The transaction represents the first sustainability bond issued by a U.S. bank holding company where the social portion of the use of proceeds will be dedicated to financial empowerment of Black and Hispanic-Latino communities.

BofA Securities was the sole bookrunner on the deal and three minority-owned broker dealers served as joint lead managers – Loop Capital Markets, Ramirez & Co., Inc. and Siebert Williams Shank.

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 Davis Polk corporate team advising the lead manager, sole book-runner and representative of the several underwriters included partners John G. Crowley (Picture) and John Banes and associates Michael J. Russo and John K. Rostom. Partners Lucy W. Farr and Po Sit and associates Joseph M. Gerstel and Shay Moyal provided tax advice.

Involved fees earner: John Banes – Davis Polk & Wardwell; John Crowley – Davis Polk & Wardwell; Lucy Farr – Davis Polk & Wardwell; Joseph Gerstel – Davis Polk & Wardwell; Shay Moyal – Davis Polk & Wardwell; John Rostom – Davis Polk & Wardwell; Michael Russo – Davis Polk & Wardwell; Po Sit – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Bank of America Securities; Loop Capital Markets; Ramirez & Co.; Siebert Williams Shank & Co. LLC;

Author: Ambrogio Visconti