Bank of Ireland raises €750m with new green bond
Bank of Ireland has raised €750m through a new green bond issuance, its second green bond of the year and the first euro-denominated senior issuance by a European bank since the start of the Middle East conflict.
The bond was issued with an eight-year maturity and priced as mid swaps plus 100 basis points, representing the tightest Irish senior debt issuance since 2021.
Mid swaps refers to the midpoint between bid and offer rates in the interest rate swap market and is commonly used as a benchmark for setting the interest rate on new corporate bond issues.
Investor demand was strong, with final orders exceeding €2.2bn and participation from approximately 135 investors. The bond carries a fixed coupon of 3.875%.
“Today’s issuance reflects the continued confidence investors have in Bank of Ireland and in our long-term strategy," said Tony Morley, group treasurer at Bank of Irelad.
"The strong demand and tight pricing underline the quality of the Bank’s credit and our ability to access markets even in challenging conditions.
Bank of Ireland has raised €750m with a new green bond.
"This green bond further strengthens our funding position while supporting customers in their transition to a lower carbon economy.”
Bank of Ireland is on track to reach its €30bn sustainable financing target by 2030.
The bookrunners on the transaction were Davy, Barclays, BofA Securities, ING, Société Générale, and UBS.
(Pic: Getty Images)
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