Saturday 20 January 2018

AIB prepares for first unsecured senior bond deal since financial crash

AIB does not anticipate needing any further bailouts from taxpayers
AIB does not anticipate needing any further bailouts from taxpayers

Donal O’Donovan

AIB is lining up its first senior unsecured bond deal since the crash, the Irish Independent has learned.

A deal will be a major test of market support because such debt is not secured on any specific collateral or backed by government guarantee.

The state owned bank has mandated Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley and Nomura to line up a call with investors at 3.30pm today where details of the deal are expected to be announced.

Ireland’s Merrion Capital will act as a co-lead manager on the deal.

The call is taking place ahead of a potential euro-denominated senior unsecured transaction, which is likely to be priced and placed with investors later today or tomorrow.

Irish banks have been back in the markets for the past 12 months, borrowing by issuing bond deals, but to date they have relied mainly on so called covered bonds – a type of debt secured on assets as well as the pledge of the borrower.

Since the crash only Bank of Ireland has been able to issue unsecured, senior bonds, which it did for the first time, post crash, earlier this year.

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