Monday 18 December 2017

Bank of Ireland raises €1bn in bond deal

Bank of Ireland
Bank of Ireland

Donal O’Donovan

Bank of Ireland has raised €1bn on the markets at an interest rate of 1.87pc a year in the latest in a series of bond deals.

The new three and a half year “covered bond” is secured on a “pool” of Irish mortgages. It was issued by Bank of Ireland Mortgage Bank (BOIMB). 

The deal was more than three and half time oversubscribed, with investors offering to lend €3.6bn to the bank, the lender said in a statement.

The bank opted to accept €1bn of the funds on offer and the bonds were placed with a group 200 international investors.

The deal was arranged by Credit Suisse, HSBC, Lloyds Bank, Natixis and UBS

In a statement Bank of Ireland said the “sustained access to international funding markets” shown over the past 12 months is a vote of confidence by bond investors in Bank of Ireland.

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