AIB raises €500m in bond markets
It’s the second covered bond deal of the year for the bank
If the deal goes ahead, it will be AIB’s second covered bond issue so far this year. Photograph: Bryan O’Brien/THE IRISH TIMES
AIB returned to the bond markets this afternoon, with a €500 milion covered bond five year benchmark transaction. It is the second time the bank has tapped the covered bond markets for funding this year and is a further sign of Irish banks’ ability to raise money in the wholesale markets, rather than relying on the European Central Bank for funding.
The deal was priced at a spread over mid-swaps of 180 basis points, and according to the bank, was “ well placed” across approximately 90 international investors.
The bank said that the deal “ supports AIB’s stated objective to engage with the market in a balanced and measured manner”.
In January, the bank issued €500 million at a yield of 2.644 per cent, which was followed in March by a €500 million five year deal from Bank of Ireland.