Bank of Ireland raises EUR 2.5 billion of 5 year long term funding in highly successful Government Guaranteed public transaction
Bank of Ireland Group today (21 January 2010) announced that it has raised EUR 2.5 billion of 5 year funding through a senior unsecured Government guaranteed fixed rate transaction.
- Bank of Ireland launched a successful EUR 2.5 billion 5 year senior unsecured Government guaranteed fixed rate transaction
- Issue represents first EUR public benchmark transaction by an Irish bank under the new Government guarantee – the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (ELG Scheme)
- Extremely successful transaction with oversubscribed order book of over EUR 3.3 billion
- Issue sold to well-diversified range of over 162 investors across 22 countries
- The transaction was announced with an initial price guidance of circa 150 basis points over mid swaps. Following very strong investor demand, the price tightened to mid swaps + 145 basis points
- 5 year maturity (28 Jan 2015) allows Bank of Ireland the opportunity to lengthen and diversify the duration of its term wholesale funding
- Issue rated Aa1 (neg) / AA (neg) by Moody’s and Standard & Poor’s (expected)
Bank of Ireland Group today (21 January 2010) announced that it has raised EUR 2.5 billion of 5 year funding through a senior unsecured Government guaranteed fixed rate transaction. Today’s highly successful trade is the first euro-denominated public benchmark transaction by an Irish issuer under the new Irish Government guarantee scheme, the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (ELG Scheme). On joining the ELG Scheme on 11 January 2010, Bank of Ireland welcomed the flexibility afforded by the scheme to issue debt securities in both guaranteed and un-guaranteed formats. Today’s successful issue of EUR 2.5 billion of 5 year long term funding supports the Group’s objective of maintaining a prudent maturity profile of wholesale funding and achieving more conservative balance sheet metrics.
Today’s senior unsecured transaction was oversubscribed with very strong international participation and a final order book of over EUR 3.3 billion within 4 hours. The order book was of a very granular nature with over 162 investors from 22 countries participating in the transaction.
The final allocation of investors included; 25% from Germany, Austria and Switzerland, 17% from Ireland, 14% from France, 13% from the UK, 7% from the Nordic region, 5% each from the Benelux and Iberia regions, 4% from Italy, 7% from other European countries and 3% from Asia and Middle East.
The issue was also diversified across investor type with very strong demand from long term investors; 42% was issued to Banks, 32% issued to Fund Managers, 14% issued to Central Banks / Official Institutions, 11% to Insurance companies and 1% to other institutional investors.
Bank of Ireland will pay an annual coupon of 4% for this funding, which is equivalent to 145 basis points over the 5 year EUR mid-swap rate.
21 January 2010
Head of Group Communications
Tel: 01 604 3833
Bank of Ireland
Head of Group Investor Relations
Tel: 01 604 3501
Bank of Ireland
Head of Term Funding
Tel: 01 799 3140
Bank of Ireland Global Markets