{"id":71599,"date":"2020-05-15T08:00:00","date_gmt":"2020-05-15T12:00:00","guid":{"rendered":"https:\/\/www.businesspundit.com\/?p=71599"},"modified":"2020-05-15T05:54:58","modified_gmt":"2020-05-15T09:54:58","slug":"boa-raises-1-billion-with-covid-19-bond-to-fight-pandemic","status":"publish","type":"post","link":"https:\/\/www.businesspundit.com\/boa-raises-1-billion-with-covid-19-bond-to-fight-pandemic\/","title":{"rendered":"BoA Raises $1 Billion with COVID-19 Bond to Fight Pandemic"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"1200\" height=\"675\" data-src=\"https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond.png\" alt=\"BoA Raises $1 Billion with COVID-19 Bond to Fight Pandemic\" class=\"wp-image-71600 lazyload\" data-srcset=\"https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond.png 1200w, https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond-300x169.png 300w, https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond-600x338.png 600w, https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond-768x432.png 768w, https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond-364x205.png 364w, https:\/\/www.businesspundit.com\/wp-content\/uploads\/2020\/05\/BOA-bond-758x426.png 758w\" data-sizes=\"(max-width: 1200px) 100vw, 1200px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/675;\" \/><\/figure><\/div>\n\n\n\n<p>On Thursday, May 14, the Bank of America Corp. sold a $1 billion corporate bond specifically to help finance part of the health industry amid the coronavirus pandemic. No other major bank has sold a bond to support the health industry during the COVID-19 outbreak yet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Distribution of Bond Proceeds<\/h2>\n\n\n\n<p>The $1 billion proceeds of the bond will go to fund not-for-profit hospitals to treat coronavirus patients, businesses that manufacture PPE, and those that provide diagnostic testing or develop coronavirus vaccines.<\/p>\n\n\n\n<p><strong>Reporting<\/strong><\/p>\n\n\n\n<p>Bank of America plans to create a website to regularly report how funds have been allocated. These reports will also include case studies, projected outcomes and impact indicators intended to provide an overview of response efforts.<\/p>\n\n\n\n<p>This bond is the first of its kind, but a record $11.9 billion other new bonds with social good in mind have been issued around the world during the first quarter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bond Pricing<\/h3>\n\n\n\n<p>Bank of America&#8217;s COVID-19 bond was priced at a spread of 130 basis points over a risk-free benchmark to yield 1.486%. This was lower than anticipated, which suggests a strong investor demand. According to inside sources, the offering was initially pitched to investors at a spread of 145 basis points over Treasurys.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BoA sold a $1 billion corporate bond specifically to help finance part of the health industry amid the coronavirus pandemic.<\/p>\n","protected":false},"author":74,"featured_media":71600,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,25,8281],"tags":[],"class_list":{"0":"post-71599","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance","8":"category-business","9":"category-markets"},"acf":[],"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/71599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/users\/74"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/comments?post=71599"}],"version-history":[{"count":2,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/71599\/revisions"}],"predecessor-version":[{"id":71602,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/71599\/revisions\/71602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media\/71600"}],"wp:attachment":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media?parent=71599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/categories?post=71599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/tags?post=71599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}