AIB paving way for social bonds
AIB is preparing for the issuance of a Social Bond which it says will go towards financing community programmes across the country.
The bank has launched a Social Bond Framework which will pave the way for it to tap what it believes is expanding investor appetite for bonds issued by organisations that go towards achieving environmental, social and governance (ESG) goals.
According to figures from the Dutch bank, ING, Euro issuance of bonds for ESG purposes is set to exceed €350 billion this year.
AIB says funds raised will go towards social and charitable projects such as the provision of social and affordable housing, healthcare and education.
Examples it gave include lending to a housing body to provide greater access to social and affordable housing or providing loans to micro and small to medium enterprises operating within socioeconomically disadvantaged areas across Ireland, ‘helping generate and retain employment as well as foster economic growth and reduce social and economic inequalities.’
“Having launched our Green Bond Framework in 2019 and successfully issuing two Green Bonds, raising a total of €1.75 billion in funding for environmental and climate related projects, we are now launching a Social Bond Framework that will support communities across Ireland,” Colin Hunt, Chief Executive of AIB explained.
“Our Social Bond Framework lays the foundation for us to raise funds in the form of Social Bonds which will support positive societal change, helping provide new social and affordable housing, support access to education and healthcare, finance SMEs in disadvantaged areas, charities and non-profits,” he added.