HG bonds: Bank of America places $2B of 2025 callable notes for ESG plans; terms

Bank of America Corp. today completed a $2 billion offering of 1.53% four-year (non-call three) fixed-to-floating senior notes due Dec. 6, 2025, at T+67, versus early whispers in the T+85 area.

The bank intends to allocate an amount equal to the proceeds of the offering to the financing or refinancing, in whole or in part, of existing or future Eligible Equality Progress Social Assets and Eligible Green Assets, which come under the headings of affordable housing and socioeconomic advancement and empowerment.

Bank of America came into today's session as the largest single issuer on the U.S. high-grade bond marketplace in 2021 through November. The new $2 billion issue brings its year-to-date sum of benchmark offerings to $41.25 billion, which compares with the $35.75 billion it completed in 2020.

The bank's A-/A2/AA- ratings profile reflects positive outlooks at S&P Global Ratings and Moody's and a stable outlook at Fitch. S&P Global Ratings revised the outlook up from stable in May, arguing that the well-diversified bank "has grown prudently for years, is benefiting from the economic rebound, and is well positioned to compete in an evolving and consolidating banking industry."

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