Bank of America issues $600 million "Green Bond"

In May 2015, Bank of America issued our second green bond for $600 million in aggregate principal amount, part of our ongoing commitment to accelerating the transition to a low-carbon economy. The bond will help to fund renewable energy and energy efficiency projects under the company’s $125 billion multi-year environmental business commitment. Bank of America increased its second environmental business initiative from $50 billion to $125 billion in low-carbon business by 2025 through lending, investing, capital raising, advisory services and developing financing solutions for clients around the world. For more information on our second green bond, view our press release and Management Assertion.

Here are some examples of projects financed by our second green bond.

Energy efficiency finance
City of Smithville.
White Oak Independent School District.

Renewable energy finance
Vivint Solar.
EDPR, Headwaters Wind.
NextEra, Seiling Wind and Seiling Wind II.
SolarCity, Castello Solar.
NRG Energy.

In November 2013, Bank of America issued the first ever corporate green bond also used to finance renewable energy projects such as wind, solar, geothermal and energy efficiency projects such as lighting retrofits, co-generation, and building insulation in residential, commercial and public properties. For more information on our first green bond, view our Management Assertion.

Here are some examples of projects financed by our first green bond:

Energy efficiency finance
City of Los Angeles Streetlights Project.
City of Oakland Streetlights Project.

Renewable energy finance
Antioch Unified School District.
SolarCity, Solar PV Power Partnership.
Silicon Ranch, Simon Solar.
D.E. Shaw, Balko Wind
NextEra, Pioneer Plains.
NextEra, Steele Flats.
Invenergy, Prairie Breeze.

City of Smithville

$2.7MM Qualified Energy Conservation Bond Investment for the City of Smithville, Texas

The financing will be used to implement energy conservation measures (ECMs). The city, incorporated in 1895, is approximately 3.51 square miles in area and is located in Bastrop County. The Financing will primarily fund lighting upgrades (facility and street lighting) and water and electric meter improvements in various city buildings. The total guaranteed savings associated with this energy project will be enough to cover 100% of project costs over the 15-year term of the transaction.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 2,100
  • Water Use avoided (thousands of liters): 55,000
  • Non-hazardous waste avoided (metric tons): 27
  • MWh reduced from efficiency projects: 2,600
  • Energy cost savings: $273,000

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White Oak Independent School District

$2.6MM Tax-exempt Financing for the White Oak Independent School District, Texas

The financing will be used to implement energy conservation measures (ECMs).The district is a comprehensive community public school district, serving students in kindergarten through twelfth grade in the north-central part of Gregg County in the East Texas oil field. The financing will primarily fund lighting upgrades, boiler controllers and water conservation improvements in various district buildings. The total guaranteed savings associated with this energy project will be enough to cover 100% of project costs over the 15-year term of the transaction.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 1,700
  • Water Use avoided (thousands of liters): 45,000
  • Non-hazardous waste avoided (metric tons): 23
  • MWh reduced from efficiency projects: 2,200
  • Energy cost savings: $226,000

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Vivint Solar

$100MM tax equity investment in a residential solar PV power program with Vivint Solar

Vivint Solar a leading provider of residential solar energy systems in the United States.

The program is structured as a disproportionate-allocation flip partnership in which Bank of America Merrill Lynch is the sole tax equity investor while Vivint Solar holds the developer equity portion.

The partnership invests exclusively in the purchase of fully contracted residential solar systems located on the rooftops of private citizens’ residences in the states of Arizona, California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey and New York.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 30,000
  • Water Use avoided (thousands of liters): 803,000
  • Non-hazardous waste avoided (metric tons): 400

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EDPR, Headwaters Wind

$193MM tax equity investment in a wind power partnership with EDP Renewables North America (EDPR)

EDPR is the fourth largest owner and operator of wind farms in the U.S. The commitment is structured as a disproportionate-allocation flip partnership in which Bank of America Merrill Lynch holds the tax equity portion and EDPR holds the sponsor equity portion.

The partnership finances Headwaters, a 200MW clean power generation facility composed of 100 wind turbines located on 45,000 acres in Randolph County, Indiana. The facility achieved commercial operation in the fourth quarter of 2014. The electricity generated from the facility is being sold to Indiana Michigan Power under a 20-year power purchase agreement. The facility delivers clean, renewable power to the citizens of Randolph County, producing enough electricity to power approximately 56,000 homes.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 252,000
  • Water Use avoided (thousands of liters): 6,756,000
  • Non-hazardous waste avoided (metric tons): 3,400

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NextEra, Seiling Wind and Seiling Wind II

$198MM tax equity investment in a wind power partnership with NextEra Energy Resources, LLC

NextEra Energy Resources, LLC, is, together with its affiliates, the largest operator of wind and solar power assets in the United States.

The investment was structured as a disproportionate-allocation flip partnership in which Bank of America Merrill Lynch and another investor hold the tax equity portion and NextEra holds the sponsor equity portion.

The partnership finances the Seiling Wind and Seiling Wind II facilities located in Dewey County, Oklahoma. Seiling Wind is a 198.9MW clean power generation facility composed of 117 wind turbines; Seiling Wind II is a 100.3MW clean power generation facility composed of 59 wind turbines. Both facilities are operational, and the electricity being generated is being sold to the Public Service Co. of Oklahoma and Golden Spread Electric Cooperative, respectively, under long-term power purchase agreements. The facilities deliver clean, renewable power to the citizens of Dewey County, producing enough electricity to power 92,000 homes.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 288,000
  • Water Use avoided (thousands of liters): 7,712,000
  • Non-hazardous waste avoided (metric tons): 3,800

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SolarCity, Castello Solar

$175MM tax equity investment in a solar PV power partnership with SolarCity Corporation

SolarCity is a full-service U.S. solar developer and operator for homeowners, businesses and government organizations.

The Investment is structured as a disproportionate-allocation flip partnership in which Bank of America Merrill Lynch is the sole tax equity investor, while SolarCity holds the developer equity portion.

The partnership finances the SolarCity residential solar portfolio, Castello Solar, comprising solar PV systems located at various residential sites (rooftop and ground-mount) across 15 Project jurisdictions (Arizona, California, Colorado, Connecticut, Delaware, Washington DC, Hawaii, Maryland, Massachusetts, Nevada, New Jersey, New York, Oregon, Pennsylvania and Texas).

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 33,000
  • Water Use avoided (thousands of liters): 874,000
  • Non-hazardous waste avoided (metric tons): 400

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NRG Energy

$100MM tax equity commitment in a residential solar PV power program with NRG Energy

NRG Energy is one of the largest solar power developers in the country.

Bank of America Merrill Lynch committed up to $100MM of tax equity investment in the program, which is structured as a disproportionate-allocation flip partnership in which Bank of America Merrill Lynch is the sole tax equity investor while NRG Energy holds the developer equity portion.

The partnership will finance a residential solar portfolio composed of approximately 48.8MW of solar systems located on residential rooftops of private citizens’ homes in the states of Arizona, California, Colorado, Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania and Texas.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 33,000
  • Water Use avoided (thousands of liters): 888,000
  • Non-hazardous waste avoided (metric tons): 400

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City of Los Angeles Streetlights Project

$40MM financing for the City of Los Angeles, California to finance the largest LED streetlight retrofit project in the world.

Under the LED Street Lighting Energy Efficiency Program, the City of Los Angeles retrofitted 141,089 street lights with LED bulbs.

Before the program, LA’s street lights consumed 168 gigawatt hours of electricity at an annual cost of $15MM, while emitting 110,000 metric tons of carbon dioxide. The new lights reduce energy use by 63.1 percent and reduce carbon emissions by 47,583 metric tons a year.

LED lights on average lower energy consumption, delivering between 44 and 53 percent annual savings in energy costs when compared with high pressure sodium lights. In addition, they have a longer lifespan of up to 20 years, reducing maintenance costs while providing greater functionality.

Estimated annual environmental benefits:

  • Water use avoided (thousands of liters): 1,407,000
  • Non-hazardous waste avoided (metric tons): 700
  • MWh reduced from efficiency projects: 71,000

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City of Oakland Streetlights Project

$16MM structured financing for City Of Oakland, California to finance the conversion of of 30,000 high pressure sodium (HPS) cobra head streetlights to Light-Emitting-Diode (LED) streetlights.
 
Oakland is one of the first municipalities in the U.S. to implement wide-scale street lighting LED conversion. About 10% of the municipalities in the United States have converted, or are in the process of converting to LED lights.
 
LED lights on average lower energy consumption, delivering between 44 and 53% annual savings in energy costs when compared with HPS. The enhanced lighting will provide better vision on Oakland streets, resulting in crime mitigation and improved community safety. Since a portion of the project will be completed by local personnel, it will spur job growth in the City.

Estimated annual environmental benefits:

  • Energy cost savings: $1,472,000
  • Global Warming metric tons CO2e avoided: 11,048
  • Water Use avoided (thousands of liters): 1,119,975
  • Non-hazardous waste avoided (metric tons): 147
  • MWh reduced from efficiency project: 14,869

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Antioch Unified School District

$30MM Qualified Zone Academy Bonds (QZABs) with the Antioch Unified School District in California for solar and energy efficiency equipment.

The financing will provide funds for the District to purchase solar panels for installation at 24 school sites as well as energy efficiency equipment for lighting and HVAC upgrades. The systems will be used to produce electricity and offset utility costs, generating additional revenue and energy savings.

The solar project will be integrated into the Pathway to Engineering program of study at Antioch High School. Students in the Pathway to Engineering Academy will be provided a “living solar laboratory”, where clean renewable energy is not only generated for the benefit of the District’s electrical energy consumption, but also monitored, measured and integrated into the core engineering curriculum. 
                        
The entire energy project is expected to save the District $34.3MM over the 25-year useful life of the project.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 7,700
  • Water Use avoided (thousands of liters): 206,000
  • Non-hazardous waste avoided (metric tons): 103
  • MWh reduced from efficiency projects: 1,700
  • MWh produced from renewable project: 8,700

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SolarCity, Solar PV Power Partnership

$100MM tax equity investment in a solar PV power partnership with SolarCity.

SolarCity is a full-service U.S. solar developer and operator for homeowners, businesses and government organizations.

The partnership finances the SolarCity commercial solar portfolio comprising solar PV systems located on commercial rooftop, carport canopy and ground mounted sites throughout the United States and Puerto Rico.

The projects will be fully constructed in 2015 and are expected to generate clean, renewable solar power for thousands of customers in the U.S.

Estimated annual environmental benefits:

  • Global warming metric tons CO2e avoided: 15,000
  • Water use avoided (thousands of liters): 397,000

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Silicon Ranch, Simon Solar

$88.8MM True Lease financing of a 30MW utility scale solar farm for Silicon Ranch Corporation

Silicon Ranch Corporation is a developer, owner and operator of commercial and utility scale solar facilities.

Simon Solar, located on a 200-acre site in Social Circle, Georgia, features a total of 129,390 ground-mounted solar modules and produces approximately 58MM kilowatt hours annually, or enough to power approximately 6,500 homes.

The solar installation generates renewable energy to the electric grid through a 20-year Power Purchase Agreement with the Georgia Power Company.

Estimated annual environmental benefits:

  • Global warming metric tons CO2e avoided: 46,000
  • Water use avoided (thousands of liters): 1,228,000
  • Non-hazardous waste avoided (metric tons): 600

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D.E. Shaw, Balko Wind

$76.2MM tax equity investment in a wind power partnership with D.E. Shaw Renewable Investments

D.E. Shaw Renewable Investments is a global investment and technology development firm.

The investment was structured as a disproportionate-allocation flip partnership in which Bank of America Merrill Lynch and three other investors hold the tax equity portion and D.E. Shaw holds the sponsor equity portion.

The partnership finances Balko Wind, a 299.7 MW clean power generation facility composed of 162 turbines located in Beaver County, Oklahoma. The facility has achieved commercial operation and the electricity generated is being sold to Public Service Company of Oklahoma and Western Farmers Electric Cooperative under 20-year power purchase agreements. The facility delivers clean, renewable power to the citizens of Beaver County, producing enough electricity to power 100,000 homes.

Estimated annual environmental benefits:

  • Global warming metric tons CO2e avoided: 143,000
  • Water use avoided (thousands of liters): 3,817,000
  • Non-hazardous waste avoided (metric tons): 1,900

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NextEra, Pioneer Plains

$170MM tax equity investment in a wind power partnership with NextEra Energy Resources.

NextEra Energy Resources is the largest operator of wind and solar power assets in the United States.

The partnership finances the Blackwell and Minco III wind farms, in central and eastern Oklahoma, respectively, for a total of 160 MW of power generation. The facilities have been in operation since December 2012 and have enough installed capacity to generate power for more than 42,000 average homes.

Additionally, the facilities deliver clean, renewable power to the citizens of Oklahoma City and surrounding areas.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 157,000
  • Water Use avoided (thousands of liters): 4,209,000
  • Non-hazardous waste avoided (metric tons): 2,000

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NextEra, Steele Flats

$86.8MM tax equity investment in a wind power partnership with NextEra Energy Resources

NextEra Energy Resources is the largest operator of wind and solar power assets in the United States.

The partnership finances Steele Flats, a 75MW clean power generation facility, located in Jefferson and Gage counties in southeast Nebraska, comprised of 44 wind turbines.

The facility broke ground in June and achieved commercial operation in October 2013. The electricity generated from the facility is being sold to the Nebraska Public Power District under a 20-year power purchase agreement. The facility delivers clean, renewable power to the citizens of Jefferson and Gage counties, producing enough electricity to power 19,000 homes.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 114,000
  • Water Use avoided (thousands of liters): 3,050,000
  • Non-hazardous waste avoided (metric tons): 1,500

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Invenergy, Prairie Breeze

$58MM tax equity investment in a wind power partnership with Invenergy

Invenergy is a developer, owner, and operator of power generation facilities in North America and Europe. The partnership finances Prairie Breeze, a 200.6MW clean power generation facility composed of 100 wind turbines located in Antelope and Boone counties in Nebraska.

The facility broke ground in May 2013 and achieved commercial operation in January 2014. The electricity generated from the facility is being sold to the Omaha Public Power District under a 25-year power purchase agreement. The facility delivers clean, renewable power to the citizens of Antelope and Boone counties, producing enough electricity to power 100,000 homes.

Estimated annual environmental benefits:

  • Global Warming metric tons CO2e avoided: 141,000
  • Water Use avoided (thousands of liters): 3,786,000
  • Non-hazardous waste avoided (metric tons): 1,900

Note: Estimated annual environmental benefits are calculated by a top 4 public accounting firm, using Bank of America financial inputs and the Comprehensive Environmental Data Archive (CEDA).

Note: Images are not representative of projects described on this page.

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10/11/13