AIB is expected to return to the markets shortly with another covered bond deal, having mandated Barclays, Deutsche Bank, Morgan Stanley and UBS Investment Bank for a three and a half year euro denominated transaction.
It is expected that the deal will be rated Baa3 by Moody’s and A by Fitch and SP, and that it will be launched in the near future, subject to market conditions.
If AIB gets the transaciton away, it will be the second time it has raised money in the bond market in as many months, having issued €500 million in a three-year covered bond deal in November, in an issue that was four times over-subscribed.
The November deal was the first time that the bank had issued a bond backed by Irish mortgages, and without the assistance of a state guarantee, since 2007.
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