PTSB has raised €300m from its inaugural Green Tier 2 Capital instrument. The issuance was 11.5 times oversubscribed, with very strong demand of close to €3.5 billion from a broad range of approximately 200 international investors.
This is the highest ever level of oversubscription for any Eurozone bank Tier 2 issuance. The coupon on the instrument was 3.875%.
The proceeds of the issuance will add to the Bank’s capital base, facilitating additional mortgage, business and consumer lending as the Bank continues to add new customers, do more business with existing customers, and diversify its business through targeted new offerings for personal and business customers.
The new instrument has a 10.25 year tenor, callable after 5.25 years, and is expected to settle on 22 September.
The transaction was announced after PTSB initiated a separate tender offer for its outstanding €250m fixed rate debt instrument. The Bank is offering to buy back this instrument from investors ahead of its scheduled call date in May 2026. This offer will remain open to investors over the coming days and is expected to settle on 24th September.
“We saw unprecedented demand for this issuance, with a record level of oversubscription from investors. The strength and range of investor demand for this transaction is very encouraging.
It is an important step for the Bank that highlights both our commitment to sustainability and the significance we attach to aligning our capital issuance with investor demand.
The transaction leaves us well placed to continue to optimise our capital structure, supporting our ambitious plans to continue growing and bringing much-needed competition to the Irish personal and business banking market.”
Notes to editors
This is the second issuance under PTSB’s Green Bond Framework. The new Green Tier 2 Capital instrument follows the successful issuance of PTSB’s €500m Green HoldCo Senior issuance in 2024.
