Strong bond demand encouraging news for AIB

Bank of Ireland unearthed over €5bn of demand for the country’s first subordinated bond transaction since December 2012, a result that could open a similar path for AIB to follow suit.

On Wednesday, Bank of Ireland, the only Irish lender to escape nationalisation during the crisis, priced a €750m 10-year non-call five issue with a coupon of 4.25%, less than half what it paid for a 10-year bullet 18 months ago.

With such a strong demand for an attractively priced deal, bankers now say they are encouraging AIB to pull the trigger on what could be the next hot deal from Ireland, as it recovers from the banking and sovereign crisis.