Bank of Ireland raises €500m in term funding
Bank of Ireland Group has raised €500m in term funding.
However, it could have been much higher, as the bank was offered €800m within 20 minutes of the subscription list being opened yesterday.
The money was raised through bond selling.
A total of 22 investors from 11 countries bought the bonds.
The successful investors included 38% from France, 20% from Benelux, 18% from Germany and Austria, 7% from this country and 4% from Switzerland, while the remaining 13% was placed across Europe and the Middle East.
The issue was also diversified across investor type with 47% issued to Fund Managers, 24% to insurance companies and pension funds, 22% to banks, while the remaining 7% was bought by Central Banks.
The bank recently announced that it had raised in the region of €3bn in term funding in the quarter to end of June 2009.
Meanwhile, Bank of Scotland (Ireland) staff were standing by today to hear whether the group is to close its Halifax branch network or re-organise it.
Union bosses representing the 1,700 staff want to know what will happen the 44 branches the group operates in this country.
The UK owner of the bank, Lloyds TSB, has pumped €1.45bn of fresh equity into the Irish operation over the past seven months.
At national level, it has been learned that the Government is close to having its €25bn borrowing needs for next year in place shortly.
The National Treasury Management Agency (NTMA) has raised the money through the sale of bonds.
Their success means that the Government will have money in place for its needs from the beginning of 2010.
However, it also means that it will have to achieve all its savings targets, making it increasingly likely that a very tough budget is on the way.
