Bank of America pledges 250 billion dollars for US infrastructure financing
Bank of America said Wednesday that it will 'deploy $250 billion by July 2027 for U.S. infrastructure and digital projects. It says this move will help boost the economy and create tens and thousands of jobs.
Wall Street Bank's "Critical Infrastructure Finance Initiative" will offer primary market lending, investment, capital markets services, banking and advisory, as well as other financial products.
The announcement shows how U.S. major financial institutions are looking to capitalize on the rising demand for AI data centres, critical minerals and energy infrastructure improvements.
This comes just days after Morgan Stanley announced that it would finance technology and infrastructure project worth?roughly $1.5 Trillion over the next decade.
JPMorgan Chase announced a $1.5 trillion plan last year to finance, facilitate and invest in industries that are deemed crucial to U.S. economic and national security, such as defense, energy and advanced manufacturing.
BOOSTING GROWTH AND CREATING JOBS
Bank of America will focus its financing on three areas: digital and power infrastructure (including renewable energy, energy storage, and data centers); transportation infrastructure and core infrastructure.
Karen Fang is the global head of sustainable finance and infrastructure at Bank of America. She said, "Meeting America’s growing infrastructure requirements requires mobilizing large amounts of capital across sectors that are increasingly interconnected."
"Delivering such?projects' requires integrated financing solutions that span corporate and project-level funds in both the public and private market."
The bank stated that the $250 billion target would be measured over a period of 18 months, from January 1, 2026 to July 4, 2020.
When asked about the possibility of deploying additional capital after July 2027, Fang, co-head of global solutions for capital at BofA said, "If we do our jobs?right, then we should?be doing more capital."
She said that many projects need new infrastructure before they can be operational.
In the United States infrastructure construction loans are typically for five to seven-year terms. Fang said that once projects are operational and completed, they are often refinanced using longer-term debt lasting 10, 15, or 20 years.
She said that greater investment in infrastructure would drive economic growth, and create jobs for the long term.
She said that infrastructure spending would lead to economic growth. Reporting by Pritam biswas in Bengaluru, and Saeed Azhar from New York. Editing by Sahal muhammed and Mark Potter.
(source: Reuters)
