Irish bank AIB has raised €500 million from its seventh green bond issuance, with the proceeds from this senior non-preferred bond going towards the ‘financing of projects with clear environmental and climate action benefits,’ it said.
According to the International Monetary Fund, Ireland‘s transition to a low-carbon economy will require around €20 billion annually over the coming decade, much of which will come from the private sector, and AIB noted that its Climate Capital lending programme is playing an important role in funding areas such as renewable energy generation and transmission, green buildings, and clean transportation.
‘Catalyst for change’
“Sustainability is at the heart of AIB’s Group 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 allows us to deploy capital and provide funding for vital green and transitional infrastructure and activities.
“We will continue to lead the way in the transition to a greener world by reducing our own carbon footprint, supporting our 3.35 million customers through the provision of green loans, and ensuring capital is used in a way that benefits the environment.”
Climate Action Fund
Since 2019, AIB has deployed €16.6 billion from its €30 billion Climate Action Fund, including €5.1 billion in green new lending in 2024, representing 35% of its €14.5 billion new lending.
It was the first Irish bank to issue a ‘green bond’, back in 2020, and to date has raised €5.15 billion from green bonds and €6.9 billion when including social bonds for broader ESG purposes.
Investor demand for its latest bond was strong, the bank added, with the order book peaking at €1.3 billion. The pricing tightened by 20 basis points to a final coupon of 3.75%, with over 60% of the orders coming from green investors.
The issuance was arranged by Goodbody, Morgan Stanley, ING, Citi, BNP Paribas, and NatWest Markets. Read more here.
