Irish bank AIB issues EUR 650m green bond

Irish financial services group AIB (LON:AIBG) has raised EUR 650 million (USD 701m) in its sixth green bond issuance, securing funds to finance projects “with clear environmental and climate action benefits,” it was announced today.

The bank said that investor interest peaked at about EUR 3.5 billion, which allowed for the issuance of the bond at a coupon of 4.625%. The transaction’s lead arranger group comprised Goodbody, HSBC, ING, JP Morgan, Morgan Stanley and NatWest Markets.

“Our ambition is that 70% of AIB’s new lending will be green or transition by 2030. And we are making real progress towards achieving that goal through the deployment of our EUR 30 billion Climate Action Fund. The more green lending we do, the more green capital we can raise as investors are attracted by our strong ESG credentials,” CEO Colin Hunt stated, noting that “green bonds are a key part of the transition finance toolkit.”

AIB became the first Irish bank to issue a green bond in 2020 and has since then raised a combined EUR 4.65 billion from such transactions. When adding social bonds, the sum increases to EUR 6.4 billion.

(EUR 1.0 = USD 1.079)

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