Bank of Ireland has raised €600m from the issuance of new additional tier 1 (AT1) bonds to institutional investors with an interest rate – or coupon – of 6.125%.
In a statement, the bank said it saw healthy demand for the securities, with orders of about €1.4 billion and about 115 investors taking part.
Bank of Ireland noted that the largest distribution was to investors in the UK and Ireland (45%) and France (25%). The remainder was spread across investors from the rest of Europe and other regions.
In terms of investor type, asset managers bought 79% of the issue, with banks, insurance and pension companies, and hedge funds accounting for the rest, it added.
“With the tightest ever AT1 credit spread for an Irish bank, we are really pleased with yesterday’s successful transaction,” Tony Morley, Group Treasurer at Bank of Ireland, said.
“It demonstrates the continued strength of the Bank of Ireland Group and is a significant vote of confidence by investors in the outlook for Bank of Ireland,” he added.
