Bank of Ireland raises Euro €1.25 Billion of longer term funding with successful public issuance of 2 year Euro Floating Rate Note

Bank of Ireland Group today (18 June 2008) announced that it has raised Euro 1.25 billion in longer term funding through the issuance of a public benchmark-sized 2 year Euro senior unsecured floating rate note off its Euro Medium Term Note (EMTN) funding programme.

Key Highlights

  • Bank of Ireland prices and launches a 2 year Euro 1.25 Billion senior unsecured Floating Rate Note (FRN)
  • 2 year Euro FRN priced at 3 month Euribor and 105 basis points
  • Global order book reached Euro 1.5 Billion
  • Issue sold to over 85 investors across 21 countries
  • Issue carries Aa2/A+ ratings by Moody’s and Standard & Poor’s respectively
  • 2 year Euro FRN is Bank of Ireland’s first public debt issuance since July 2007

Bank of Ireland Group today (18 June 2008) announced that it has raised Euro 1.25 billion in longer term funding through the issuance of a public benchmark-sized 2 year Euro senior unsecured floating rate note off its Euro Medium Term Note (EMTN) funding programme.

This issue was oversubscribed with a final order book of Euro 1.5 Billion and the final allocation of investors includes 34% from Ireland and the UK, 32% from Germany and Austria, 32% from the rest of Europe and 2% from Asia and the Middle East. The issue was diversified across investor type with 58% issued to Banks/Bank Treasuries, 19% to Fund Managers and Pension Funds, 11% to Insurance companies, 7% to Central Banks and Agencies, with the remaining 5% issued across other institutional buyers. The issue was priced at 3 month Euribor + 105 basis points and carries Aa2 and A+ credit ratings from Moody’s and Standard & Poor’s respectively.

The successful issuance of today’s 2 year Euro FRN adds to Bank of Ireland’s strong funding position, and is the Group’s first public benchmark issuance since July 2007. At the Group’s recent Preliminary Results announcement for the year to 31 March 2008, senior management highlighted strong growth in customer deposits of 19% to Euro 86 Billion, and its ability to raise wholesale funding across the maturity spectrum. Bank of Ireland issued Euro 4 Billion in term funding with a maturity greater than one year in 48 individual transactions during the six-month period to 31 March 2008 – a key highlight of the Group’s robust wholesale funding strategy, which has continued to deliver results throughout the extended period of market dislocation (since Aug 2007).

Bank of Ireland maintains a prudent funding profile to support planned business growth. At 31 March 2008, 82% of the Group’s loan book was funded through customer deposits and wholesale term funding with a maturity greater than one year.

HSBC, UBS and UniCredit Group were joint lead managers on this transaction.

Ends

18 June 2008

For further details contact:

Dan Loughrey
Head of Group Corporate Communications
Bank of Ireland Group
Tel: +353 1 604 3833 / + 353 86 241 2470

Damien Daly
Head of Strategy and Marketing
Bank of Ireland Global Markets
Tel: 01 609 3221 / +353 86 817 9415