Bank of Ireland raises Euro 2 Billion of long term funding with highly successful issuance of Sep 2010 Government Guaranteed fixed rate transaction
Bank of Ireland Group today (26th November 2008) announced that it has raised Euro 2 billion through the issuance of a public benchmark-sized September 2010 year Government Guaranteed Euro senior unsecured fixed rate bond.
- Bank of Ireland prices and launches a short 2 year (3rd September 2010) Government Guaranteed Euro 2 billion senior unsecured fixed rate Medium Term Note.
- Extremely successful transaction in a volatile market backdrop
- Priced at 65bps over mid swaps
- Global order book close to Euro 3.5 billion within 3 hours
- Issue sold to diversified range of investors in 21 countries across Europe and Middle East
- Issue rated Aaa/AAA ratings by Moody’s and Standard & Poor’s
- This is Bank of Ireland’s first benchmark issuance under the Irish Government Guarantee.
Bank of Ireland Group today (26th November 2008) announced that it has raised Euro 2 billion through the issuance of a public benchmark-sized September 2010 year Government Guaranteed Euro senior unsecured fixed rate bond. This has been issued from Bank of Ireland’s Euro Medium Term Note programme. This transaction demonstrates Bank of Ireland’s access to term wholesale funding markets throughout the current market turmoil.
This issue received significant oversubscription with a final order book of close to Euro 3.5 Billion within 3 hours. It was a highly diversified orderbook across geography and investor type. Investors from 21 countries across Europe and the Middle East participated in the transaction; including 24% from Ireland, 17% from the UK, France 16%, 10% from Germany and Austria, 10% from Benelux, Eastern Europe 8% and 5% placed into Scandinavia and the remaining 10% placed into other institutional buyers. The issue was diversified across investor type with 47% issued to Banks/Bank Treasuries, 26% to Fund Manager, 11% to Central Banks, 6% to Insurance companies with the remaining 10% issued across other institutional buyers. The issue was priced at 65 basis points over mid swaps and will carry Aaa/AAA ratings from Moodys and Standard & Poors, as the note has been issued within the scope of the Irish Government Guarantee.
The successful issuance of today’s September 2010 Euro fixed rate adds to Bank of Ireland’s strong funding position. It is the Group’s first public benchmark since the announcement of the Irish Government Guarantee.
At the Group’s recent interim results announcement for the half year to 30th September 2008, senior management highlighted strong growth in customer deposits of 19% year on year. Bank of Ireland continues to reduce its reliance on wholesale funding, reducing from €85billion to €78billion in the period from September 2007 to September 2008. Bank of Ireland issued Euro 5.7 Billion in term funding with a maturity greater than one year in 89 individual transactions during the six-month period to 30 September 2008. 79% of the Group’s loan book was funded through customer deposits and wholesale term funding with a maturity greater than one year, as at 30th September 2008. Bank of Ireland has a strong contingent liquidity position and has an eligible collateral pool of €47billion at 30th September 2008.
Media Relations Manager,
Group Corporate Communications
Bank of Ireland
Tel: 01 604 3836 or 087 246 0358