AIB has raised €500 million through its seventh green bond issuance, reinforcing its commitment to sustainable finance and the transition to a low-carbon economy. The bond will directly fund key projects with environmental benefits, such as renewable energy, green buildings, and clean transportation, contributing to Ireland’s energy transition.
With this latest issuance, AIB has now secured a total of €6.9 billion through environmental, social, and governance (ESG) bonds, solidifying its position as a leader in sustainable finance. In 2024, green lending reached €5.1 billion, representing 35% of AIB’s total new lending.
A Strategic Commitment to Sustainability
AIB’s Chief Executive, Colin Hunt, emphasized the central role sustainability plays in the bank’s strategy. “Sustainability is at the heart of AIB’s Group strategy,” Hunt said. “This green bond issuance allows us to deploy capital for vital green infrastructure and activities, driving positive climate change in Ireland and beyond.” Hunt also highlighted AIB’s broader commitment to reducing its own carbon footprint while providing green loans to its 3.35 million customers.
This bond issuance follows AIB’s trailblazing move in 2020, when it became the first Irish bank to issue a green bond. Since then, the bank has raised €5.15 billion specifically through green bonds, further cementing its role in financing Ireland’s transition to a greener future.
Strong Demand in Volatile Markets
Despite market fluctuations, investor demand for the bond remained robust, reaching €1.3 billion. Over 60% of the order book was made up of green investors, underscoring the appeal of AIB’s ESG-aligned financial products. The bond’s final coupon rate was set at 3.75%, reflecting competitive pricing amid a volatile market environment.
Ireland’s Green Investment Needs
The International Monetary Fund (IMF) estimates that Ireland will need approximately €20 billion annually over the next decade to fund its transition to a low-carbon economy. The private sector, including banks like AIB, will play a crucial role in mobilizing the capital needed to meet this target.
AIB’s latest green bond issuance underscores the bank’s ongoing commitment to driving sustainable growth and supporting the transition to a greener economy. As the first Irish bank to issue a green bond, AIB continues to lead by example in the growing field of climate-conscious finance.
Sources: AIB Press Release
