Bank of Ireland raises €500 million of 7 year long term secured funding underlined by very strong investor demand

Key highlights

  • Bank of Ireland launched a highly successful €500 million 7 year Euro fixed rate Irish covered bond transaction / Asset Covered Security (ACS)
  • Today’s 7 year ACS further demonstrates the Group’s ability to access long term funding from international capital markets and the strong investor interest reflects the progress being made by Bank of Ireland
  • Following successful 3 and 5 year covered bond transactions in recent months, today’s 7 year issue extends Bank of Ireland’s maturity reach with investors
  • The issue attracted very strong investor demand
    • Oversubscribed order book of circa €2.3bn
    • Pricing of 195 basis points over 7 year mid swaps
    • Issue sold to a diversified rage of over 150 international investors
  • Lead investment banks on the transaction were Citigroup, Danske Bank, Deutsche Bank, Nomura and RBS

Table 1:  ACS trade allocation by country.

County / region %
Germany/ Austria 35
UK 33
Netherlands 7
Nordics 7
Southern Europe 7
Switzerland 5
France 4
Other 2

Table 2:  ACS allocation by investor type

Investor type %
Asset Managers 56
Pension Funds / Insurance 26
Banks / Private Banks 17
Other 1






Bank of Ireland Group today (25 September 2013) announced that it has raised €500 million of 7 year long dated secured funding through a highly successful Euro fixed rate covered bond issue.

The covered bond transaction was issued by Bank of Ireland Mortgage Bank (BOIMB) under the investor friendly Irish Asset Covered Securities legislation.  The trade is backed by a pool of 100% Irish residential mortgages.

Since returning to the public bond markets in November 2012, Bank of Ireland has successfully issued debt across the capital structure.  Today’s covered bond issue follows the Group’s €500 million senior unsecured trade in May this year, €1.5bn of 3 and 5 year ACS issued in November 2012 and March 2013, the €250 million tier 2 subordinated deal in December 2012 and the Group’s CoCo refinanced from Government to private ownership in January 2013.

Today’s deal was very well received by investors.  The order book was oversubscribed at circa €2.3bn and the issue was sold to over 150 investors.  The coupon on this 7 year ACS is 3.625%.

The success of today’s long dated covered bond issue is a further vote of confidence by international bond investors in Bank of Ireland.