AIB raises €2bn by tapping the bond market
AIB: 'We're very satisfied with how the deal was received.' Crispin Rodwell/Bloomberg
Friday November 21 2008
Allied Irish Banks yesterday became the first Irish lender to tap the bond market following the €440bn Government guarantee scheme -- raising €2bn.
The country's largest bank was expected to only raise €1.5bn, however, it decided to raise the amount after receiving €3.9bn of orders.
"We're very satisfied with how the deal was received," the bank said, adding that it has "left plenty of demand for other banks" to launch bond issues in the near term.
The bond, which is scheduled to mature within the two-year lifespan of the guarantee, will carry an annual coupon of about 3.75pc, or 55 basis points over what's known as the 'mid-swap' rate, sources said.
This compares with the Government managing to get a €4bn bond away in recent weeks at just 25 points above this rate.
- Joe Brennan
