By Saeed Azhar and Pritam Biswas
NEW YORK, Aug 12 (Reuters) – Bank of America said on Wednesday it plans to deploy $250 billion by July 2027 to support U.S. digital and infrastructure projects, a move it says will boost the country’s economic growth and help create tens of thousands of jobs.
The Wall Street bank said its “Critical Infrastructure Finance Initiative,” launched on the heels of the nation’s 250th anniversary celebrations, will provide primary market lending, investments, capital markets services, and banking and advisory offerings.
The announcement underscores how major U.S. financial institutions are seeking to capitalize on rising demand for AI data centers, critical minerals and energy infrastructure upgrades.
It comes days after Morgan Stanley said it would facilitate roughly $1.5 trillion over the next decade to finance technology and infrastructure projects.
Last year JPMorgan Chase launched a $1.5 trillion plan to facilitate, finance and invest in industries deemed critical to the U.S. national security and economic resilience, including defense, energy and advanced manufacturing.
BOOSTING GROWTH, CREATING JOBS
Bank of America’s financing will target three areas: digital infrastructure, including data centers and computing; energy and power infrastructure, including renewable generation and energy storage; and core infrastructure such as transportation and natural gas.
“Meeting America’s growing infrastructure needs requires mobilizing capital at scale across increasingly interconnected sectors,” said Karen Fang, global head of infrastructure and sustainable finance at Bank of America.
“Delivering these projects requires integrated financing solutions spanning corporate and project-level capital in both public and private markets.”
The $250 billion target will be measured over an 18-month period from January 1, 2026, to July 4, 2027, the bank said.
“If we all do our job right, we should be deploying more capital,” said Fang, who is also co-head of global capital solutions at BofA, when asked about potential deployment of more capital after July 2027.
Many projects require new infrastructure to be built before becoming operational, she said.
In the United States, infrastructure construction loans typically have terms of five to seven years. Once projects are completed and operating, they are often refinanced with longer-term debt lasting 10, 15 or 20 years, Fang said.
She said greater infrastructure investment would help drive economic growth and create long-term jobs.
“Infrastructure spending will lead to economic growth and prosperity,” she said.
(Reporting by Pritam Biswas in Bengaluru and Saeed Azhar in New York; Editing by Sahal Muhammed and Mark Potter)
Comments