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In A First, Bank Of America Sells Bonds To Fund Coronavirus Response

Neer Varshney

Bank of America Corporation (NYSE: BAC) has sold $1 billion in a corporate bond offering to raise funds for efforts against the novel coronavirus (COVID-19) pandemic, MarketWatch reported Thursday.

The Charlotte, a North Carolina-based banking giant, is the first major financial services company in the U.S. to fund the frontline COVID-19 responders, according to MarketWatch.

The four-year bonds were priced at 1.3% percentage points above the Treasury's to yield 1.486%, people familiar with the matter told MarketWatch.

In a filing with the Securities and Exchange Commission, BoA says that the funding will go towards "not-for-profit hospitals," skilled nursing facilities, and healthcare equipment manufacturers and suppliers.

The organizations will use the funding for treating coronavirus patients or manufacturing and supplying goods related to testing, prevention, and treatment of the deadly virus.

BoA shares closed 4% higher at $21.71 on Thursday. The shares added another 1.3% in an after-hours session at $22.

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