Taking advantage of a government program approved last year designed to provide liquidity to financial institutions during the credit crisis, Bank of America Corp. has sold $8.5 billion of debt backed by the Federal Deposit Insurance Corp., according to a report.

The program is called the Temporary Liquidity Guarantee Program. Debt issued through the program by the end of June 2009 will be fully guaranteed by the FDIC to June 2012.

The program guarantees new senior unsecured debt issued by any bank, thrift or holding company, which will help banks fund their operations.

Data compiled by Bloomberg:

- Sale of $4 billion of floating-rate notes due in September 2010 which pay three basis points more than the three-month Libor offered rate.

- Sale of $2.5 billion of floating-rate notes due in June 2012 which yield 20 basis points more than the three-month Libor.

- Sale of $2 billion of 2.375 percent fixed-rate notes due June 20112 which pay 102.5 basis points more than Treasuries with similar maturities.

A bank of America spokesman did not immediately reply for comment, Bloomberg said.

In October, FDIC Chairman Sheila Bair said the FDIC was providing guarantees to put U.S. banks on an even playing field with European and Asian nations doing the same.

“This guarantee will allow banks and their holding companies to roll maturing senior debt into new issues fully backed by the FDIC,” the agency said in October.

The program is paid for with fees included as part of a bank’s regular insurance premium.