Financing a Low-Carbon Economy
We understand the powerful role we can play—both nationally and locally—in helping our customers, clients and communities navigate the transition to a low-carbon economy. That’s why we have made commitments to align our financial products and services to the burgeoning market for low-carbon energy and other emerging environmental business opportunities.
Our goal is to serve all our customers—from large corporate clients and institutional investors to individual consumers and small businesses. This is the cornerstone of our environmental business strategy: financing of a wide range of projects that drive positive environmental change and create opportunities for individuals and institutions to invest in environmental sustainability.
Cost-efficient funding for a Kansas wind farm
EDF Renewable Energy, an established owner and operator of wind farms in the U.S., selected BofAML to provide a $120.4 million tax equity investment in a wind power partnership. The investment was structured as a disproportionate-allocation flip partnership in which BofAML holds the tax equity portion and EDF holds the sponsor equity portion. The partnership finances Spearville 3, a 100.8 MW clean power generation facility located in Kansas, consisting of 63 turbines. The facility began delivering carbon-free electricity in October 2012 and generates enough electricity to supply approximately 40,000 average homes with renewable energy. The financing solution provides an extremely cost-efficient source of funding to EDF, while also contributing to a cleaner energy mix in Kansas. This is BofAML’s first wind investment with EDF.
Conserving energy and providing job training in North Dakota
Banc of America Public Capital Corp (BAPCC) Energy Services provided $4.8MM lease financing for Energy Conservation Measures (ECMs) for Lake Region State College (LRSC) to be installed under a Guaranteed Savings Energy Services Agreement with an Energy Services Company. LRSC is a two-year state-run institution of higher education located in Devils Lake, North Dakota. The ECMs include a 1.6MW wind turbine, a gas boiler, a central station pumping upgrade, and various other energy efficiency improvements for the LRSC campus. In addition to reducing utility costs, the wind turbine will be utilized as a hands-on education tool for students enrolled in LRSC’s Wind Energy Technician program – the only such program in the State of North Dakota. The college expects to generate nearly $6.7MM in savings over the 15-year term of the financing.
Environmental Life Cycle
With the worldwide transition to a low-carbon economy gaining momentum, our focus is on leveraging our global financial capabilities to support and drive opportunities and innovation for the clients and communities we support. It started with developing cleaner energies and creating more energy-efficient products and buildings. As environmental innovation spreads across all business sectors, we continue to bring experience, expertise and capital to all of our clients and customers around the globe.
Helping Clients Invest According to Their Values
One of our nonprofit clients is focused on conservation and education. Their mission is to educate children about climate change and the effects of carbon in the atmosphere and on the ecology of the planet. Our mandate was to create a large cap equity and taxable corporate fixed-income portfolio comprised of companies that meet the client's rigorous standards of environmental stewardship.
We seek companies that are innovators in the field of climate change mitigation.
We also seek companies with progressive policies concerning environmental management (areas such as waste-water use, reliance on renewable energy or using recyclable materials in their production and packaging processes) as well as companies that are best-in-class thought leaders on environmental policy as it relates to disclosure and reporting. Currently 35 nonprofit foundations are currently leveraging our Socially Innovative Investing Strategy in U.S. Trust.