Bank of Ireland raises €750 million of 3 year senior unsecured funding

Strong investor demand with costs continuing to reduce

Key highlights

Bank of Ireland launched a successful €750 million 3 year senior unsecured fixed rate transaction
Strong investor demand for this transaction underlines the Group’s on-going access to funding from international capital markets at reducing costs
Today’s transaction is the latest in a series of successful covered bond, senior and subordinated debt issuance by the Group over the past 18 months
This sustained access to international funding markets is a vote of confidence by bond investors in Bank of Ireland and reflects the material progress being made by the Group
The transaction attracted strong investor demand
Issue was two times oversubscribed with an order book of c.€1.5 billion
Pricing of 150 basis points over 3 year mid swaps, which compares with the Group’s last senior unsecured transaction in January 2014, a 5 year €750 million transaction, at 210 basis points over 5 year mid swaps
Yield of 2.073%
Issue sold to a well-diversified range of 130 investors, with c.99% of the trade placed with international investors
Lead investment banks on the transaction were BNP Paribas, Deutsche Bank, HSBC, Morgan Stanley and Nomura

Bank of Ireland today (30 April 2014) announced it has raised €750 million of 3 year unsecured funding through a successful Euro fixed rate transaction.

Today’s transaction underlines Bank of Ireland’s continued access to capital markets, at reducing costs, over the past 18 months. The Group has issued a range of debt instruments during this period including covered bonds, senior unsecured and subordinated debt issuance. Also, of particular note, the Group’s Convertible Contingent Capital Tier 2 Notes were refinanced from the Government to private ownership in January 2013, and in December 2013, the Group fully reimbursed the State for the €1.8bn 2009 Preference Shares.

Today’s deal was very well received by investors. Order books were oversubscribed at c.€1.5 billion and the issue was sold to a well-diversified range of 130 investors across geographies with c.99% of the trade sold to investors outside of Ireland. The yield on this transaction is 2.073%.

Overall, the trade is a vote of confidence by international bond investors in Bank of Ireland and Ireland reflecting the continued significant progress which has been and continues to be made by the Group and Ireland.

ENDS