Bank of America is fighting inequality in Black and Hispanic communities

By: Miguel A. Rodriguez

18:23, 23 September 2020

The Bank sold $2 billion worth of bonds to raise money

As the protests that took place a couple of months ago in the US have opened the world's eyes over the issues minorities are going through, companies continue to do their best to combat income and social inequity.

That’s the case for one of the largest American banks, Bank of America, which managed to raise $2 billion in the debt markets to help the American Black and Hispanic communities. The action falls under the "sustainability bond issuance". The five-year financing represents a new type of social debt – one with a goal of fighting against inequalities in the minority communities, which lately have been exacerbated by the pandemic.

The Equality Progress Sustainability Bond will be used to fund minority-owned businesses, neighborhoods and affordable housing for Black and Hispanic communities. Moreover, low-carbon activities and renewable energy investments (cleaner forms of transportation, solar, and wind panel projects) will be funded.

Bank of America’s initiative has been applauded by investors, who saw this as an “opportunity for exposure in a name that has taken a leading role in the developing market.”

Despite its good intentions, the market reacted negatively to the news. Bank of America stock price ended the trading session 2.17% lower.


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.