AIB has raised €1bn in the first issuance by an Irish bank of a social bond.
Social bonds are used for the financing of projects with clear social benefits.
These include those in the social and affordable housing sector, healthcare, education and small and medium sized firms in socio-economically disadvantaged areas.
The bond attracted strong investor interest after it was announced to the markets this morning and more than €2.1bn in offers were received.
The interest rate was fixed at 2.25%.
"This is another investor vote of confidence in AIB which has over the last two years already raised €1.75 billion for lending to projects that help in the fight against climate change," said AIB chief executive, Colin Hunt.
"As a bank at the very heart of the Irish economy, our role is central to the creation and delivery of sustainable economic, social and environmental development in towns and communities across the country'."
In total 97 investors across 21 countries were involved in the final order book.
In order to be labelled "social'’, the AIB bond must comply with the International Capital Markets Association’s Social Bond Principles governing the use of the bond proceeds and related transparency and reporting requirements.
