Bank of Ireland closes Eur409 Collateralised Debt Obligation

Bank of Ireland Acquisition Finance - a division of Bank of Ireland International Finance Limited - has announced the closing of its first collateralised debt obligation (CDO).

The CDO, a structured finance product that purchases a diverse pool of assets and gives investors access to a range of returns, confirms the Bank's position as one of the leading players in the European leveraged loan market.

Bank of Ireland has been an active player in the leveraged loan market since 1996 both as an arranger and participant. This CDO - Partholon CDO I - was launched in early June this year and was upsized from Eur350m to Eur409m reflecting strong investor demand.

The fund is part of the ongoing strategic development of Bank of Ireland's leveraged finance business. The CDO allows the bank to leverage off its existing infrastructure and increase third party funds under management. According to Tom Hayes, Head of Acquisition Finance the new fund also allows the Bank to take full advantage of the favourable outlook for this attractive asset class.

Partholon CDO I is a Euro-denominated CDO that will invest in a diverse portfolio of primarily European sub-investment grade loans. The target composition of the fund is 90% senior secured loans and 10% mezzanine loans. The deal is conservatively structured with all debt tranches publicly rated by Moodys and Standard and Poors.

With offices in Dublin, London and the U.S., Bank of Ireland Acquisition Finance has over 40 professionals dedicated to the leveraged loan market. The team currently manages a portfolio of over Eur2.2bn in loans and has played a leading role in a number of recent leveraged buy-outs across Europe.

For further information :

Tom Hayes
Head of Acquisition Finance
Bank of Ireland Acquisition Finance
Ph. 01 6115317

Anne Mathews
Media Relations Manager
Group Corporate Communications
Ph. 01 604 2836