Irish bank AIB has raised €1 billion from the issuance of its ninth green bond, with the proceeds set to finance environmental and climate-related projects.
As the bank noted, Climate and Infrastructure Capital is a rapidly growing segment of the bank’s lending book, with AIB using the proceeds of its green bonds to fund eligible projects in areas such as renewable energy generation and transmission, green buildings, clean transportation, and circular economy and waste management.
Some €20.5 billion in green and transition lending has been provided since AIB announced its €30 billion Climate Action Target in 2019. Of this, €3.8 billion was deployed in the first nine months of this year.
AIB was the first bank in Ireland to issue a green bond, back in 2020, and since then it has raised €6.45 billion in green bond funding, including refinancing. When social bonds are included, the bank’s total issuance for ESG purposes totals €8.2 billion.
‘Core to AIB’s strategy’
“Sustainability is core to AIB’s strategy as we continue to be a catalyst for positive climate change in Ireland and beyond,” commented Colin Hunt, AIB chief executive. “This latest green bond issuance is an
embodiment of where our shared ambition meets action, enabling us to deploy capital and provide funding for vital green and transition-related infrastructure and activities.
“We will continue to lead the way towards a greener world by reducing our own carbon footprint, supporting our 3.4 million customers through the provision of green loans, and ensuring capital is used in ways that benefit the environment.”
Demand for the latest green bond was strong from investors, the bank noted, reaching a peak order book of €3.8 billion. Pricing tightened by 30 basis points to a final coupon of 3.75%, reflecting 2-3bps new issue premium. Lead arrangers on the issuance included Goodbody, Morgan Stanley, Bank of America, Goldman Sachs, UBS and JP Morgan.
AIB Sustainability Conference
AIB made the announcement ahead of its AIB Sustainability Conference, which takes place today (27 September), and features speakers including actor and activist Benedict Cumberbatch, and professor Brian Cox.
A survey published to coincide with the conference found that a sizeable majority (86%) of Irish consumers believe that climate change is happening, however there is a noticeable gap when it comes to public awareness about sustainability, with only a third (33%) stating that they feel ‘knowledgable’ about sustainability topics. More information about the conference can be found here.
