ICC Bank raises fresh finance

ICC Bank, the State-owned bank, has raised £20 million in two subordinated loan stock issues. This brings to £30 million the amount raised in new capital following the £10 million rights issue in August. Mr John Staunton, treasurer, ICCBank, said the £30 million should allow the bank lend an extra £150 million. This will be used to support continued strong growth in business. The subordinated loans increase the bank's lower tier two capital and have been arranged in two parts. The first £10 million tranche was arranged by Banque Nationale de Paris, Dublin branch, and the second £10 million tranche was arranged by Ulster Bank Markets. Both have a maturity of 15 years at a rate of DIBOR/LIBOR plus 35 basis points. The extra funding will give ICCBank a capital adequacy ratio of around 11.2 per cent, before the inclusion of this year's net profits. ICC is currently finalising a paper on its future strategic operations for the Minister for Finance. The bank is keen to find a strategic partner to facilitate its future growth.