Tuesday, September 24 12:44:54
Bank of Ireland is preparing to auction off a seven-year covered deal - the longest public bond offering from an Irish bank since the financial crisis began.
The sale of a seven-year maturity is considered to be a logical step for Bank of Ireland, which has only issued three- and five-year debt up until now. It is also likely to raise fresh hopes that other banks can issue debt at a variety of tenors across the curve.
Ireland's banks have been on an upward trajectory over the past year, and Bank of Ireland - the only Irish financial institution that managed to avoid a full state-bailout during the financial crisis - has been at the forefront of the rehabilitation.
The bank in November sold a covered deal, remarketed a contingent capital bond in January, and then returned to the senior market in May as it seeks to wean itself off ECB support.
In August, total ECB borrowing from the country's banks declined to around E43.3bn - the lowest level since September 2008, according to the Department of Finance.
Citi, Danske, Deutsche Bank, Nomura and RBS have been hired by Bank of Ireland as lead managers for the EUR500m no-grow issue, which is expected to be rated Baa3 by Moody's and A low by DBRS.