AIB raises €750m through green bond issue – The Irish Times

AIB has raised €750 million through the issuance of its fourth green bond, bringing the total environmental bonds raised to over €3 billion to date.

Proceeds from the bond will fund the financing of projects with environmental benefits that help customers transition to a low-carbon future.

The bank said investor interest in the bond peaked just below 1.5 billion euros, allowing the bank to issue the bond at a level of MidSwaps +2.85%, this which is equivalent to a coupon of 5.75%. The final order book was €1.4 billion, with 94 investors from 22 countries.

To earn its “green” label, the AIB bond must comply with the International Capital Markets Association’s Green Bond Principles governing the use of bond proceeds and related transparency and reporting requirements.

AIB has raised €3.25 billion through the environmental bond since it began issuing bonds in 2020, as well as an additional €3 billion from a social bond earlier this year.

“As Ireland’s largest financial services provider with 2.8 million customers, AIB is already actively supporting the transition to a low carbon future by reducing our own carbon footprint and helping our customers do the same. . We aim to play an important role in helping the government and the European Union meet their carbon reduction targets,” said AIB Chief Executive Colin Hunt.

“Our ambition is for 70% of new loans to be green or in transition by 2030. And we are making great strides towards that goal, as green loans have already increased to 24% of new loans over the past few years. first nine months of the year. The more green loans we make, the more green capital we can attract, as environmental, social and governance (ESG) investors increasingly want to invest in companies with strong green credentials. The success of this transaction recognizes our position as a national champion with a very strong financial and capital position and our continued commitment to our sustainability goals.

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