Bank of Ireland said today that it has raised €750m through the sale of a new green Tier 2 bond.
Bank of Ireland said the transaction saw strong demand from investors, with orders reaching more than seven times the amount ultimately allotted.
Orders exceeded €5.8 billion with participation from about 250 investors, it added.
The bonds have a maturity of ten and a half years and pay a fixed coupon of 4.75%.
Bank of Ireland also said it managed to secure the tightest credit spread ever for an Irish bank on a Tier 2 bond.
Today’s transaction marks the lender’s fourth debt issuance this year, after it raised €500m from a green Tier 2 bond in January, a €750m green senior bond in March and a $1 billion senior debt issuance in May.
Bank of Ireland noted that its sustainable finance lending reached €19.3 billion at the end of June, an increase of 25% on the same time last year.
Tony Morley, Group Treasurer at Bank of Ireland, said that against a backdrop of ongoing geopolitical uncertainty and market volatility, the transaction reflects strong investor confidence in its strategy, financial strength and long-term prospects.
“The issuance further supports our regulatory capital position, enabling us to continue lending to households and businesses while advancing our ambition to deliver €30 billion in sustainable finance by 2030,” he added.
Davy, BofA Securities, HSBC, JP Morgan, Morgan Stanley and UBS acted as bookrunners for the transaction.
