AIB bond raises €500m

AIB has raised €500m through a 3.5-year covered bond. This is the second time the State-owned bank has tapped the private markets since last November.

Similar to the November issue, the latest bond was not guaranteed by the Government. In a statement AIB said: “This 3.5 year deal was priced at a spread over mid-swaps of 185 basis points and was over four times oversubscribed. The total order book was c. €2.2bn with in excess of 160 international investors, reflecting a well placed and diversified profile. Demand came from 20 countries with 99% placed outside Ireland. This transaction demonstrates the continued progress of AIB’s strategy of engaging with the market in a balanced and measured manner.”

The yield was 2.65%, which was tighter than the 2.75% yield on the previous issue.