AIB hires banks for ‘bail-inable’ bonds under new rules

Five banks mandated to arrange meetings with potential investors in unsecured bonds

AIB  expects to issue between €3 billion and €5 billion of “bail-inable” debt through its holding company to meet regulatory requirements. Photograph: Cyril Byrne

AIB expects to issue between €3 billion and €5 billion of “bail-inable” debt through its holding company to meet regulatory requirements. Photograph: Cyril Byrne

AIB has hired banks to help it sell the first issuance of bonds by a new holding company, created to meet new European rules on minimising future government bailouts of ailing lenders.

The bank has mandated BNP Paribas, Goldman Sachs International, JP Morgan, Morgan Stanley and UBS to arrange a series of meetings on Monday and Tuesday with potential investors in the senior unsecured bonds. The bonds will be due for repayment in five years’ time.

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