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the treasury specialists

BoI raise E1bn in un-guaranteed debt

13/11/2012 at 18:12

Bank of Ireland became the first bailed out Irish bank to tap money on the bond markets after it today confirmed that it raised E1 billion in three year debt.

The bank said this evening that it launched a highly successful E1bn 3 year un-guaranteed Euro fixed rate Irish covered bond transaction / Asset Covered Security ACS.

This transaction was Bank of Ireland's first public issuance since October 2010 and the Group's first public ACS issue since September 2009.

In a statement it said that the transaction marks an important step for Bank of Ireland in returning to a more sustainable funding position and reducing reliance on monetary authority borrowings

The covered bond was issued by Bank of Ireland Mortgage Bank BOIMB under the investor-friendly Irish Asset Covered Securities legislation

The trade is backed by a pool of 100pc Irish residential mortgages

The transaction was announced with an initial price guidance of high 200s basis points over 3 year mid swaps

It said that investor feedback was very positive at this pricing point, enabling the transaction to be issued at the tighter end of this range of mid swaps + 270 basis points

Oversubscribed order book approaching E2.5 billion Issue sold to well-diversified range of close to 200 investors Lead investment banks on the transaction were Citigroup, Morgan Stanley, Nomura, RBS and UBS Investment, with Davy and NCB as co-leads.

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