Impact investing soars with $12 million green bond sale by Merrill Lynch
Wednesday, August 27, 2014
Merrill Lynch Wealth Management advisers sold $12 million in green bonds issued by the World Bank last week, surpassing what the investment bank expected based on similar issuances a few years ago.
About 70 clients bought the AAA-rated World Bank Green Bonds, which mature in 10 years though are callable after a year. The bonds, which pay a 2.32% coupon per year for the first five years and step up to a maximum of 8.82% per year, will fund World Bank-financed projects focused on low carbon development.
Orders for the bonds were “meaningfully higher” than anticipated, considering two sales of similar bonds in 2011 totaled $2 million and $3 million each, said Kirstin Hill, managing director and head of wealth management product origination for Bank of America Merrill Lynch.
Source: Investment News (link opens in a new window)
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