Catalytic Finance Initiative Raises $8 Billion for High-Impact Sustainable Projects

By Thomas R. Burton, III, Sahir Surmeli

On April 6, a consortium of leading financial institutions and investors pledged $8 billion to join Bank of America Corporation’s Catalytic Finance Initiative (CFI), which plans to raise at least $10 billion for investments in clean energy, high impact, and sustainable development projects. Partners joining the initiative include AllianceBernstein, Babson Capital Management, Credit Agricole CIB, European Investment Bank, HSBC Group, International Finance Corporation, and Mirova. Members of the partnership have all pledged capital and expertise to develop and advance innovative financing structures in the clean energy and sustainability space. Furthermore, the Aligned Intermediary—a group of long-term institutional investors—will collaborate on specific investment opportunities with members of the CFI. For more on the CFI, read on!

In 2014, Bank of America launched the CFI with a $1 billion commitment and a goal to raise at least $10 billion in new investment for high-impact clean energy projects from additional partners. Through partnerships with other financial institutions and investors, the CFI benefits from expertise ranging from clean energy infrastructure finance, project finance, green asset-backed securities, green bonds, emerging markets investment and advisory assistance, and approaches to merging public and private finance.

A joint statement by CFI partners highlights the importance of this initiative: “Financial innovation and capital play a critical role in the transition to a low-carbon economy.” More importantly, the CFI illustrates how a variety of partners in the financial services industry are working together to achieve a greater impact in this space.

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Thomas R. Burton, III

Member / Chair, Energy & Sustainability Practice

Tom Burton has helped to shape the clean energy industry by drawing on his passion for innovation. As a Mintz attorney, Tom counsels investors, entrepreneurs, and Fortune 100 companies. He also guides start-up organizations and accelerators to foster the next generation of energy leaders.

Sahir Surmeli

Member / Co-chair, Energy & Sustainability Practice

Sahir Surmeli is a Mintz business counselor who advises companies, boards, entrepreneurs, investment banks, and venture and private equity investors as they build and grow companies. He handles public offerings, 144A and private financings, acquisitions, joint ventures, and strategic partnerships.