Bank of America Corp has issued a US$2.25 billion bond to support clean energy projects, the largest green bond issuance by the bank so far.

The bank has now issued four corporate green bonds, raising a total of US$4.35 billion for renewable energy projects since 2013.

"Green bonds are an important tool for the private sector to finance clean and alternative energy sources, as well as other environmentally-minded activities, at competitive market rates," says Anne Finucane, a vice chairman at the company, in a statement.

"We've seen tremendous demand in the debt capital markets, with all four of our green bonds significantly oversubscribed," she adds.

Bank of America Merrill Lynch (BofAML), its investment banking arm, also leads in green bond underwriting. In 2017, BofAML underwrote US$6.5 billion (pro-rata basis) in green bonds on behalf of 41 clients. Since 2007, BofAML has underwritten more than US$27 billion on behalf of more than 100 clients.

"By providing transparency into how the proceeds will be used, green bonds also offer a relatively new way for fixed income investors to drive social and environmental change through the debt capital markets," adds Finucane.