AIB has raised $750 million (€666 million) in funding through a new bond.
The senior non-preferred bond was offered to investors at an interest rate of 5.32 per cent.
AIB said the bond allowed it meet its regulatory capital requirements while reflecting “market confidence in AIB’s performance”.
“Demand from investors was extremely strong, peaking at over $6.5 billion,” it said, meaning AIB received orders worth more than eight times the bond’s value.
AIB on Thursday completed a €1.2 billion directed share buyback with the Government.
The transaction reduced the taxpayer stake from about 12 per cent to 3.3 per cent and brings the total recovered to date by the State from AIB’s €20.8 billion crisis-era bailout to €19.2 billion. The Government’s remaining holding is currently worth about €475 million.
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On the new bond, chief executive Colin Hunt said: “AIB is delighted to once again see strong demand from investors for our latest bond issuance, following €800 million in green bond issuances in March, and the first Euro AT1 bond issuance of the year in Europe in January."
“AIB is well positioned for sustainable growth through our strong funding and capital, and this latest deal is a vote of confidence in the bank’s strategy which we are implementing at pace,” he said.
“We continue to prioritise an enhanced focus on our customers, further greening our business and driving greater operational efficiency and resilience while delivering for our customers, our investors and the wider economy,” he said.
