Bank / Credit Union

Bank of America offers bond to help combat COVID-19

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May 18, 2020

With the offering of its $1 billion corporate bond, Bank of America Corp became the first global commercial bank to specifically finance parts of the health industry that is battling the coronavirus pandemic.

Bank of America said in a MarketWatch release that proceeds from the bond will fund not-for-profit hospitals treating COVID-19 patients, businesses that manufacture and distribute protective medical equipment and supplies and companies creating diagnostic tests or vaccines to stop and treat the virus.

According to Moody's Investors Service, pricing of Bank of America's COVID-19 four-year bond deal (rated A2, A- and A+) came at a lower level than initially anticipated, indicating strong investor demand for the offering.

The bank will report through its website on where the funds from the bond are being allocated and whenever possible, will give updates on how these funds are being used to help combat COVID-19. 

For more information on how the ATM industry has been affected by COVID-19, click here.