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.
Sources: marketwatch.com, finance.yahoo.com