Nationwide gets €120m boost
IRISH Nationwide enjoyed a 98.5pc success rate with its latest offer to buy back risky debt instruments at a discount, leading to a £120m improvement in the building society's capital position.
The result of the buy-back was announced yesterday, three weeks after Nationwide announced it was offering investors 20p in cash for 'subordinate bonds' with a face value of £1.
The offer was open to those who held £126.131m of bonds falling due in 2016 and those who held £20.639m of bonds with a 2018 maturity.
Nationwide published figures showing that about 98.5pc of those who held the 2016 and more than 99pc of the 2018 holders had accepted the offer. The tender had been deemed "coercive" because the bank said it would pay just 0.001pc of the face value of the bonds to any investors who resisted.
When Anglo made a similar tender for some of its subordinate bonds last October, 90pc of investors took up the offer.
Nationwide also has a €632m pile of senior bonds that are due to mature in June 2012.