Euro2 Billion raised by Bank of Ireland in highly successful issue of first Irish Mortgage Asset Covered Securit

Key Highlights

Bank of Ireland Group today (15 September 2004) announced that, subject to final documentation and completion, it had successfully raised Euro2 billion in funding (via Bank of Ireland Mortgage Bank) through the issue of the first Irish mortgage asset covered security under the 2001 Asset Covered Securities ("ACS") Act. The issue is part of a fundraising programme from which the Bank plans to raise up to Euro10 billion over the next four to five years. It followed an intensive marketing roadshow campaign where 10 of the Bank's senior management met in excess of 200 potential investors across the globe. The issue was more than three times oversubscribed and the final allocation of investors includes 8% from Ireland, 4% from the UK, 68% from Continental Europe, 9% Scandanavia and 11% from Asia. The bond was priced at mid swaps plus 3 bps and has a preliminary rating of AAA, by both Standard & Poors and Moodys Investor Services, enabling Bank of Ireland to raise funds in the markets at attractive rates. Formal ratings are expected on completion which will take place on 22nd September 2004. An application will be made to have the securities listed on the Irish Stock Exchange on completion.

Brian Goggin, Group Chief Executive, Bank of Ireland said:
"The success of our first bond issue under our ACS programme is testimony to our innovative approach to funding and has facilitated the diversification of our debt investor base in a cost effective way. We are particularly pleased with the speed, size, quality and breadth of our order book, which represents a global vote of confidence in the Bank of Ireland brand, the Asset Covered Securities product and the Irish economy."

" I am very pleased that Bank of Ireland, through its Global Markets and Mortgage businesses, is the first financial services company to issue an Irish mortgage asset covered security. This programme has attracted exceptional international interest and will play a pivotal role in our liability management in the future. The programme has attracted a significant number of new debt investors to Bank of Ireland,"he added.

Barclays Capital (Arranger), Citigroup, Deutsche Bank and Davy were joint lead managers on this transaction.

Ends

15 September 2004

Contacts

Dan Loughrey
Head of Group Corporate Communications
Ph. 01 604 3833 or 086 241 2470

Anne Mathews
Media Relations Manager
Ph. 01 604 3836 or 087 246 0358

Fiona Ross
Head of Group Investor Relations
Ph. 01 604 3501