AIB raises € 750 million for climate projects via a new green bond


AIB has raised 750 million euros after finalizing its second green bond issue, the bank said, bringing to 1.75 billion euros the total it has raised to date through green bonds.

The bank, which issued its first green bond in September 2020, said the proceeds would help finance projects with clear environmental and climate change benefits, and also strengthen AIB’s regulatory capital position.

“Investors are increasingly considering the environment, social and [ESG] factors when it comes to making investment decisions, ”said AIB CEO Colin Hunt.

“Many ESG investors believe that companies can ‘do well while doing good’ as they seek to sustain themselves by managing risk more effectively, providing longer-term sustainable returns for shareholders and having a positive impact on the economies and societies in which they operate. . “

The € 1 billion green bond issued by AIB last year was the first of its kind on the Irish market. Bank of Ireland followed with a bond of 750 million euros in March.

Green loan

In 2020, AIB advanced nearly € 1.5 billion to support a range of green initiatives, including renewable energy projects, low-carbon offices, and the construction and purchase of energy-efficient homes, Mr Hunt said.

The bank’s goal for green loans is to represent 70% of all new loans by 2030.

“Today’s green bond issue represents another vote of investor confidence in AIB’s sustainability credentials, further strengthens our capital position and leaves us well positioned to support a sustainable economic recovery as we let’s get out of the Covid crisis. ”

The order book was twice oversubscribed, the bank said.

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