Washington, DC, June 8, 2011 – Bank of America Merrill Lynch and the World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today announced a plan to offer World Bank Green Bonds to Merrill Lynch Wealth Management investors on a periodic basis. Bank of America Merrill Lynch will arrange and offer the bonds to clients through the Merrill Lynch Global Wealth Management platform.
The first World Bank Green Bonds to be offered through BofA Merrill Lynch were launched in the second quarter of 2011. Those bonds, which will mature on May 24, 2021, pay a 3.5 percent coupon for the first year that switches to a floating 3-month USD-Libor based coupon after one year.
World Bank Green Bonds offer an opportunity for investors to support environmental solutions through a high grade fixed income investment. World Bank Green Bonds benefit from the triple-A credit strength of the World Bank and provide comparable returns to other World Bank bonds. World Bank Green Bonds support the financing by the World Bank of projects in its member countries that meet specific criteria for low carbon development. The types of eligible projects include alternative energy installations, funding for new technologies that reduce greenhouse gas emissions, reforestation, watershed management and flood protection.
“We’re delighted to work with BofA Merrill Lynch to make this opportunity to help finance activities that promote low carbon development in emerging economies available to their clients,” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.
“As a firm, we pride ourselves on being an environmental leader in the financial services sector,” said Alastair Borthwick, co-Head of Global Capital Markets at BofA Merrill Lynch. “We are committed to delivering innovative capital and investment opportunities so we are pleased that we were able to work with the World Bank on these highly rated fixed income products.”
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 187 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. Information for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).
Bank of America
Bank of America is one of the world's largest 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 company provides unmatched convenience in the United States, serving approximately 58 million consumer and small business relationships with approximately 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.