AIB Mortgage Bank has postponed plans for a €3 benchmark covered bond due to 'unfavourable market conditions'.
An official from one of the banks managing the deal said: 'In light of the extreme volatility in the credit markets, AIB Mortgage Bank has decided not to proceed for the time being with its planned covered bond transaction.'
The decision follows increased concerns about bank writedowns related to exposure to the current US sub-prime home loan crisis.
The sale was being managed by Barclays, BNP Paribas and Deutsche Bank.
