AIB sells €500m of debt under new EU rules

AIB and Bank of Ireland set up holding companies lfollowing consultation with euro zone’s Single Resolution Board

AIB has said that it will need to issue between €3 billion and €5 billion of “bail-inable” junior and senior debt through its new holding company over time.

AIB has said that it will need to issue between €3 billion and €5 billion of “bail-inable” junior and senior debt through its new holding company over time.

AIB has carried out its debut sale of bonds issued by its new holding company, which was set up late last year to meet new European rules on minimising taxpayers’ exposure to ailing lenders in future.

The group holding company sold €500 million of five-year senior unsecured bonds, priced to carry an annual coupon of 1.5 per cent. BNP Paribas, Goldman Sachs International, JP Morgan, Morgan Stanley and UBS managed the deal for AIB.

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