Permanent TSB raises €300m in debt financing

Permanent TSB has raised €300m of debt financing, via the issuance of a three-year senior unsecured medium-term note.

The move marks the first time in eight-years that the bank has successfully raised unsecured debt on the markets, with group treasurer Paul Byrne, calling it “another very positive step” in the lender’s re-engagement with the markets.

“This is a significant milestone for us to get a benchmark trade of this size completed. It further builds on the momentum of last week’s positive actions by the ratings agencies, the successful execution of the capital raise and the strides we have made in deleveraging our non-core assets,” he said.

Last month saw PTSB complete its much-heralded €525m capital raise, which valued the business at €2bn and lowered the State’s shareholding in the bank from over 99% to 75%.

Yesterday, also saw the results of the open offer element of that capital raise. Retail shareholders in Permanent TSB have subscribed for 479,954 new shares in the company under the terms of the open offer.

The shares were priced at €4.50 each, raising €2.16m for Permanent TSB. The shares will trade on the main stock- markets in Dublin and London and the number of PTSB ordinary shares in issue is now 454.7 million.

After last month’s capital raise progress, Finance Minister, Michael Noonan said PTSB’s dual flotation will allow the State “additional flexibility and liquidity” to manage its selldown of the lender.

More than €400m of the capital raised by the bank has gone on repaying the Government bailout loans, with the remainder going to shore-up capital shortfalls identified in last year’s ECB stress tests.


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