IBRC issued with bonds with value of €3.06 billion

Sat, Mar 31, 2012, 01:00

THE FORMER Anglo Irish Bank will be issued with Government bonds with a face value of €3.46 bilion as part of the deal to defer the €3.06 billion cash payment falling due on the State IOUs paying for the bailout of the bank.

The bonds will be used by the bank, which is now known as Irish Bank Resolution Corporation, in a swap for cash – initially with the National Asset Management Agency and later with Bank of Ireland, if its shareholders approve it – to settle the €3.06 billion payment due today on the Anglo and Irish Nationwide promissory notes. The bond will be issued and settled on Monday.

The new debt was provided to IBRC by tapping the existing Government bond falling due in 2025, increasing the outstanding sum due on the bond to €11.7 billion.

The bonds pay an interest rate or coupon of 5.4 per cent.