AIB raises €1bn from issuance of ninth green bond

AIB has raised €1bn from the issuance of its ninth green bond to finance projects with clear environmental and climate action benefits while strengthening its capital position. Climate and infrastructure capital is a fast-growing part of the bank's lending book, and AIB will use the proceeds from the bond sale to fund projects in renewable energy generation and transmission, green buildings, clean transportation, and circular economy and waste management. AIB's green lending book has been growing for a number of years, and the bank has deployed €20.5bn of green and transition lending since announcing its €30bn Climate Action Target in 2019, including €3.8bn in the first nine months of this year. The company became the first Irish bank to issue a green bond in 2020, and since then the bank has raised €6.45bn from the issuance of green bonds, including refinancing. When social bonds are included, the bank has raised €8.2bn from the issuance of bonds for environmental, social and governance (ESG) purposes. “Sustainability is core to AIB’s strategy as we continue to be a catalyst for positive climate change in Ireland and beyond," said Colin Hunt, CEO of AIB. "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 3.4m customers through the provision of green loans, and ensuring capital is used in ways that benefit the environment.” AIB said that investor interest in the latest bond was strong from the outset, reaching a peak orderbook of €3.8bn. Sean Mulryan and Colin Hunt (right). Pricing tightened by 30bps to a final coupon of 3.75%, reflecting 2-3bps new issue premium and marking the joint tightest European €1bn+ Tier 2 transaction so far in 2025. The lead arranger group on the issuance comprised Goodbody, Morgan Stanley, Bank of America, Goldman Sachs, UBS, and JP Morgan. (Pic: File)

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