Sunday 23 July 2017

AIB raises €500m for the second time in three months

Peter Flanagan

Peter Flanagan

ALLIED Irish Bank returned to the markets today, raising €500m for the second time in three months.

The bank said it raised €500m in a three-and-a-half year secured covered bond issue.

The bonds were sold at an interest rate of around 2.3pc, while the auction was oversubscribed by more than four times, with €2.2bn of orders lodged. The bank said that demand came from over 20 countries with over 99pc of the orders placed outside Ireland. The wide geography of investor “reflected a well placed and diversified profile”, the lender said.

“This transaction demonstrates the continued progress of AIB's strategy of engaging with the market in a balanced and measured manner,” the bank said in a stock exchange statement.

Shares in the bank were flat at 9c by mid afternoon.

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