Allied Irish Banks raised EUR 500 million through a senior non-preferred green bond announced on 14 March 2025, the seventh transaction in the Irish bank's green bond programme since it began in 2020. Investor demand peaked at EUR 1.3 billion during the bookbuilding process. The transaction was executed in the senior non-preferred format, which sits in the capital structure between senior preferred bonds and subordinated instruments.
The latest deal brings AIB's cumulative ESG-labelled bond issuance to EUR 6.9 billion since the programme was established five years ago.
ELIGIBLE ASSETS AND USE OF PROCEEDS
AIB confirmed that proceeds from the seventh green bond will be allocated towards a portfolio of eligible green assets as defined by the bank's green bond framework. The eligible categories include residential green mortgages, which support the purchase or construction of energy-efficient homes meeting defined environmental performance standards, commercial green real estate, and renewable energy finance covering projects such as wind, solar, and other forms of clean energy generation. The allocation of proceeds across these categories will be disclosed in the bank's annual green bond reporting.
AIB's framework has been reviewed and approved by an external second-party opinion provider.
SCIENCE-BASED TARGETS
AIB was the first Irish bank to have its greenhouse gas reduction targets validated by the Science Based Targets initiative.