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Bank of Ire raise E500m in debt issue

Friday, March 15 16:32:25

Bank of Ireland today followed the lead of the NTMA and successfully raised E500 million of five-year unguaranteed secured funding amid very strong investor demand.

It said that the transaction further demonstrates Bank of Ireland's access to capital markets and follows the Group's E1 billion 3 year ACS in November 2012, the E250 million tier 2 subordinated deal in December 2012 and the Group's CoCo refinanced from Government to private ownership in January 2013.

Today's 5 year ACS issuance was transacted at a significantly improved price (5 year mid swaps + 190 basis points) versus the Group's 3 year ACS deal in November (3 year mid swaps + 270 basis points), reflecting the positive sentiment for Irish issuance and the progress being made by Bank of Ireland.

The covered bond was issued by Bank of Ireland Mortgage Bank (BOIMB) under the investor friendly Irish Asset Covered Securities legislation.

The trade is backed by a pool of 100pc Irish residential mortgages.

The transaction was announced with an initial price guidance of 200 - 210 basis points over 5 year mid swaps.

Investor feedback was very positive at this pricing point, it said, enabling the transaction to be issued inside of official price guidance at + 190 basis points.

The auction saw an oversubscribed order book of E2.25 billion with the bidding over in half an hour.

Bank of Ireland said the debt issue was sold to a well-diversified range of 185 investors. Lead investment banks on the transaction were Deutsche Bank, Morgan Stanley, Natixis and RBS.