Bank of Ireland successfully raises €1bn of long term secured funding Strong investor demand for the Group’s covered bonds
- Bank of Ireland launched a successful €1bn3.5 year Euro fixed rate Irish covered bond transaction/ Asset Covered Security (ACS)
- The high level of investor demand for this 3.5 year covered bond strongly underlines the Group’s on-going ability to access funding from international capital markets
- Today’s issuance follows similar successful 3, 5 and 7 year covered bond trades, as well as senior and subordinated debt issuance by the Group over the last 12 months
- This sustained access to international funding markets is a vote of confidence by bond investors in Bank of Ireland and reflects the progress being made by Group
- The issue attracted very strong investor demand
- Oversubscribed order book of greater than €3.6bn
- Pricing of 120 basis points over 3 year mid swaps
- Coupon of 1.875%
- Issue sold to a diversified range of over 200 international investors
- Lead investment banks on the transaction were Credit Suisse, HSBC, Lloyds Bank, Natixis and UBS
Bank of Ireland Group today (6 November 2013) announced that it has raised €1 billion of 3.5 year long dated secured funding through a successful Euro fixed rate covered bond issue.
The covered bond transaction was issued by Bank of Ireland Mortgage Bank (BOIMB) under the 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, the Group has demonstrated sustained access to international funding sources and has successfully issued debt across the capital structure. Over this period, the Group has accessed public debt markets at a substantially improving price, reflecting the positive sentiment for Irish issuance and the progress being made by Bank of Ireland.