Bank of Ireland gets strong demand for 7-year debt-IFR
DUBLIN, Sept 25
DUBLIN, Sept 25 (Reuters) - Bank of Ireland, the only large Irish financial institution to avoid nationalisation, attracted strong demand in a sale of seven-year bonds, the longest paper issued by one of the country's lenders since the financial crisis.
Bank of Ireland priced the bond at mid-swaps plus 195 basis points, compared with initial guidance of 200 to 210 basis points, according to lead managers and Thomson Reuters news and market analysis service IFR.
Wednesday's issue of 500 million euros ($674.6 million) is a landmark for Ireland's banks, whose rescue forced the country to an EU/IMF bailout in 2010, and shows Bank of Ireland's advantage over other lenders such as Allied Irish Banks and Permanent TSB.
The order book was more than four times subscribed in an issue managed by Citigroup, Danske, Deutsche Bank, Nomura and RBS, IFR said.
"The announcement attracted a decent reception and investors gave us a lot of positive feedback," said a syndicate banker.
Bank of Ireland had only issued three- and five-year debt up until now. The bond is rated Baa3 by Moody's.