AIB has raised $750m in funding through a new bond, which offered investors an interest rate of 5.32%.
The bank said demand for the bond was high as it received orders worth more than eight times its value.
It noted that demand came from about 170 investors from across North America, Europe and the Asia Pacific, adding that it marked its largest ever order book on an oversubscription basis.
AIB yesterday completed a €1.2 billion directed share buyback with the State.
It said this represented another important milestone in the process of repaying the taxpayer for their support, the normalisation of the group’s share register and enhancing liquidity in AIB shares.
Colin Hunt, AIB’s CEO, said the bank was delighted to once again see strong demand from investors for its latest bond issuance, following €800m in green bond issuances in March, and the first Euro AT1 bond issuance of the year in Europe in January.
“AIB is well positioned for sustainable growth through our strong funding and capital, and this latest deal is a vote of confidence in the bank’s strategy which we are implementing at pace,” the CEO said.
“We continue to prioritise an enhanced focus on our customers, further greening our business and driving greater operational efficiency and resilience while delivering for our customers, our investors and the wider economy,” he added.
The lead arranger group on the issuance was Barclays, Goldman Sachs, Goodbody Stockbrokers, JP Morgan, Morgan Stanley and Wells Fargo, AIB said.
