Bank of Ireland says it has raised €2.5 billion of five year funding through a Government-guaranteed fixed rate deal. The bank will pay an annual interest rate of 4% for the funding.
The bank said the 'successful trade' is the first euro-denominated public benchmark transaction by an Irish bank under the new Irish Government guarantee scheme.
Bank of Ireland said the deal was oversubscribed with very strong international participation and a final order book of €3.3 billion within four hours. Over 162 investors from 22 countries took part.
The final allocation of investors included 25% from Germany, Austria and Switzerland, 17% from Ireland, 14% from France, 13% from the UK, 7% from the Nordic region, 5% each from the Benelux and Iberia regions, 4% from Italy, 7% from other European countries and 3% from Asia and the Middle East.
The bank said that there was strong demand from long term investors - 42% was issued to banks, 32% to fund managers, 14% to central banks, 11% to insurance companies and 1% to other institutional investors.
Bank of Ireland shares closed 4.6% lower at €1.45 in Dublin this evening.
