Bank of Ireland raises €500 million of longer term funding in highly successful transaction

Bank of Ireland Group today (21st July 2009) announced that it has raised a further Euro 500 million of term funding (funding with a maturity of greater than one year at date of issue) through a successful tap of its existing September 2010 Government Guaranteed fixed rate bond.

Key highlights

  • Bank of Ireland launched a successful tap of its September 2010 Government Guaranteed senior unsecured fixed rate bond
  • In this second public tap of the issue, Bank of Ireland raised Euro 500 million of term funding – total outstanding for bond is now Euro 4 billion
  • Tap issue price was guided at mid swaps + 160bps but tightened to mid swaps + 157bps amid strong investor demand
  • Order book of over Euro 800 million
  • Order book opened and closed within 20 minutes – a very strong book-build ensured Bank of Ireland reached deal target size quickly
  • Issue sold to well-diversified range of investors; 22 in total from 11 countries
  • Issue rated Aa1/AA ratings by Moody’s and Standard & Poor’s (expected)

Bank of Ireland Group today (21st July 2009) announced that it has raised a further Euro 500 million of term funding (funding with a maturity of greater than one year at date of issue) through a successful tap of its existing September 2010 Government Guaranteed fixed rate bond. The original public benchmark transaction was issued on 26th November 2008 and raised Euro 2 billion. The first public tap of the issue was done on 30th April 2009, raising Euro 1 billion.

Today’s tap was oversubscribed with a final order book of over Euro 800 million within 20 minutes. There was a strong international participation in the tap with 93% of orders from outside of Ireland. A total of 22 investors from 11 countries participated in the transaction. The final allocation of investors included; 38% from France, 20% from Benelux, 18% from Germany and Austria, 7% from Ireland and 4% from Switzerland, while the remaining 13% was placed across Europe and the Middle East.

The issue was also diversified across investor type with 47% issued to Fund Managers, 24% to Insurance Companies and Pension Funds, 22% to Banks, while the remaining 7% was bought by Central Banks

The issue was priced at 157 basis points over mid swaps and will carry Aa1/AA ratings from Moody’s and Standard & Poor’s, as the transaction has been issued within the scope of the Irish Government Guarantee.

In addition to today’s issuance of Euro 500 million of term funding, Bank of Ireland previously highlighted in its recent Interim Management Statement on 3rd July 2009, that it raised circa Euro 3 billion in term funding in the quarter to end June 2009.

Ends

For media queries please contact:

Anne Mathews
Media Relations Manaer
Group Communications
Bank of Ireland
Tel: +353 1 604 3836
Mob:087 246 0358