PTSB to sell bonds where investors could suffer losses in crash

Bonds can be bailed in if PTSB runs into trouble again in the future

Permanent TSB chief executive Jeremy Masding. Photograph Nick Bradshaw

Permanent TSB chief executive Jeremy Masding. Photograph Nick Bradshaw

Permanent TSB is laying the groundwork for its first sale of bonds where investors could suffer losses if the bank runs into trouble in the future, even after Bank of Ireland surprised the market by pulling a debt sale last week as negative Brexit headlines rattled financial markets.

The bank, led by chief executive Jeremy Masding, has had a bond prospectus approved by the Central Bank, which would enable it to market bonds that can be bailed in, or converted into equity, to comply with new European rules designed to minimise taxpayer rescues in the repeat of the financial crisis more than a decade ago.

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