Bank of Ireland has successfully issued a €500 million green bond, achieving the tightest credit spread ever for an Irish bank on a Tier 2 bond. 

Priced at mid-swaps plus 135 basis points, the bond was significantly tighter than the initial guidance of mid-swaps plus 170 basis points, reflecting strong investor confidence in the bank’s sustainability strategy.

Investor demand was substantial, with orders exceeding €2.4 billion and participation from over 160 global investors. The bond carries a fixed coupon of 4.00%, signalling robust appetite for green finance instruments in the Irish market.

“This is an excellent result for Bank of Ireland, achieved in favourable market conditions and reflecting strong investor confidence in us,” said Tony Morley, Group Treasurer at Bank of Ireland.

The proceeds will fund initiatives designed to accelerate Ireland’s transition to a low-carbon economy. This includes green mortgages, sustainability-linked lending, and financing for renewable energy projects. “It’s another important step towards delivering our €30 billion sustainable finance ambition by 2030,” Morley added.

Bank of Ireland has already surpassed its 2025 sustainability lending goal, reaching €16.5 billion by September 2025 against an original target of €15 billion. The bond strengthens the bank’s capacity to expand support for corporates, SMEs, and households looking to reduce their carbon footprint.

The issuance was managed by Davy, BNP Paribas, Deutsche Bank, Morgan Stanley, Santander, and UBS, underlining strong market credibility and demand for well-structured green debt.

Explore how the Bank of Ireland is shaping sustainable investment opportunities for the future in the full story.

Photo credits to Andrii Yalanskyi/iStock