AIB has raised €500 million from the issue of a new so-called green bond, the bank announced on Friday, the proceeds of which will be used to finance projects with clear environmental benefits.
With the issue of its latest green bond, the lender’s seventh since 2020, AIB said it has now raised a combined €5.15 million from the sale of debt linked to funding climate action projects.
AIB was the first Irish bank to issue green bonds, which are labelled as such if they align with the International Capital Markets Association’s principles governing transparency and reporting rules around bond proceeds.
Between green bonds and social bonds, the bank said it has now raised €6.9 billion from the sale of debt to fund environmental, social and governance projects.
“This latest green bond issuance allows us to deploy capital and provide funding for vital green and transitional infrastructure and activities,” said Colin Hunt, AIB chief executive.
“We will continue to lead the way in the transition to a greener world by reducing our own carbon footprint, supporting our 3.35 million customers through the provision of green loans, and ensuring capital is used in a way that benefits the environment.”
It comes just two months after AIB raised €700 million with the issue of a new Additional Tier 1 (AT1) perpetual bond to institutional investors.
AT1 bonds can be converted to equity or written down entirely if the bank’s capital strength – its Common Equity Tier 1 (CET1) ratio – were to fall below 7 per cent. As a perpetual bond, it does not have a maturity date.
Net profit at AIB rose 14 per cent last year to €2.35 billion, the bank said in full-year results for 2024 last week, with the figure coming in more 10 per cent above consensus forecasts as net interest income advanced 7 per cent to €4.13 billion, even as official interest rates fell at pace between June and December.
