AIB has launched a new €500m Social Housing Fund which will help provide 3,000 homes over the next two to three years.

AIB said the fund will be open to Approved Housing Bodies (AHBs) and experienced developers across the country.

Over 500 homes already in the bank's application pipeline will be able to avail of the fund.

The new fund follows the full allocation of AIB's previous €300m Social Housing Fund. This was announced last September and has helped to deliver over 2,000 social housing units which are on track for completion.

Colin Hunt, AIB's chief executive, said that addressing the housing supply deficit is one of the country's most urgent social and economic imperatives.

"AIB is playing a crucial role in funding the construction of sustainable social, affordable and private homes and we are currently the primary lender to schemes delivering 10,000 new units. The fact these homes are all A-rated aligns with the fulfilment of our social and environmental commitments," Mr Hunt said.