IL&P raises €2bn in new five-year bond

Irish Life & Permanent has confirmed that it has raised €2bn through the issue of a new public fixed rate bond.

The bond was issued for a term of five years and was priced at a margin of 160 bps over mid swap rates, the company said in a statement.

The issue was significantly oversubscribed, attracting strong international support from in excess of 130 investors which included leading institutions primarily in Europe.

The bond was the second issued by Irish Life & Permanent under the terms of the new Eligible Liabilities Guarantee (ELG) Scheme, which commenced in December 2009 and which is operated by the National Treasury Management Agency (NTMA). Liabilities guaranteed under the ELG Scheme can have a maturity of up to five years.

It follows the issue of a three-year $1.75bn (€1.27bn) bond by Irish Life & Permanent plc in January of this year. This bond was the first to be issued by an Irish financial institution under the terms of the ELG Scheme.