Friday 9 December 2016

EBS bondholders accept buyback deal

Lending

Published 16/06/2011 | 05:00

EBS said yesterday that 100pc of subordinated bondholders have accepted the building society's buyback offer.

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The bondholders backed an offer to sell their bonds to the bank for between 10 cent and 20 cent in the euro. The offer is part of the "burden sharing" being imposed on banks as a condition for being bailed out out by the Government.

EBS will book a profit of around €93m from the deal, cutting the total amount the Government has to inject into the bank to meet the targets set by the Central Bank in April.

The 100pc acceptance of the offer is the best take up of any of the numerous buyback offers since the start of the banking crisis, probably due to the small number of bondholders involved.

EBS has around €3bn of senior bonds that are not being targeted for burden sharing. The senior EBS bonds are either government guaranteed or in the form of secured debt.

AIB and Bank of Ireland are currently in the market with offers to buy back around €5bn of bonds between them.

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