Project Details
Project
Bank of America Equality Progress Sustainability Bond UoP Second-Party Opinion
Client
Bank of America Corporation
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Sep 2020
Evaluation Summary
Sustainalytics is of the opinion that the Bank of America Equality Progress Sustainability Bond Use of Proceeds Statement is credible and impactful and aligns with the Green Bond Principles 2018, Social Bond Principles 2020, and the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Affordable Housing, Socioeconomic Advancement and Empowerment, Renewable Energy, and Clean Transportation – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 7, 8, 10, and 11. However, Sustainalytics has identified limitations in three Socioeconomic Advancement and Empowerment subcategories related to: (1) the Supply Chain Finance programs, (2) deposits invested in Minority Depository Institutions, and (3) equity investments in Certified Minority Businesses or in venture capital or private equity funds.
PROJECT EVALUATION/SELECTION
Bank of America’s internal process in evaluating projects includes review by BofA’s Global ESG Group and senior management-level participation in project approval. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Bank of America’s Treasury Department will be responsible for managing bond proceeds and Bank of America will allocate an amount equal to the net proceeds to assets funded after the issuance date that may be originated/committed 36 months prior to issuance date or after issuance date. All proceeds are expected to be allocated within the first 24 months since issuance and pending allocation, they will be managed in accordance with normal liquidity practices. This is in line with market practice.
REPORTING
Bank of America Corporation intends to report allocation proceeds on its website on an annual basis as long as the notes remain outstanding on a portfolio basis at the category-level. In addition, Bank of America Corporation is committed to reporting on relevant impact metrics. Sustainalytics views Bank of America Corporation’s allocation and impact reporting as aligned with market practice.