Bank of Ireland today announces that it has completed an Exchange Offer for any and all of the outstanding notes relating to five Lower Tier 2 securities (three Euro securities and one each in Sterling and US Dollars) with a nominal value equivalent to circa €2.9 billion.
The securities exchanged have a nominal value equivalent to €1.62 billion. These securities will be exchanged at a discount into the following new securities
- €978 million, 10% coupon, maturity 12 February 2020
- £197 million, 10% coupon, maturity 12 February 2020
The equity accretion for the Bank of Ireland Group from the Exchange Offer is expected to be circa €405 million.
Including the impact of the exchange offer on a proforma basis the estimated capital ratios of the Group at 30 September 2009 would have been:
|Equity Tier 1||7.0%||6.6%|
|Core Tier 1||10.5%||10.1%|
|Total Tier 1||11.4%||11.0%|
The successful completion of this Lower Tier 2 Exchange Offer represents another meaningful step in strengthening Bank of Ireland’s balance sheet and capital position.
11 February 2010