Dublin, Ireland-based AIB (Allied Irish Banks) Capital Markets has closed a E1 billion 3 year senior unsecured unguaranteed bond issue. Reportedly, this was the first senior unsecured unguaranteed bond issue from any Irish bank since the government guarantee was introduced in September 2008.
The deal was priced at a spread over mid-swaps of 250 basis points with in excess of 230 international investors reflecting a well diversified geographic profile and was oversubscribed by 2.9 times.
Colm Doherty, managing director of AIB Capital Markets, said: “The positive reaction of the international markets by investing in unsecured and unguaranteed bonds of AIB reflects the clarity and certainty brought by National Asset Management Agency. This deal represents a very significant step towards the normalisation of the international credit markets stance towards Irish banks and bodes well for future unguaranteed issuance from the Irish financial system.”
