DUBLIN Nov 28 Allied Irish Banks
started taking orders on a 500 million euro ($646.55 million)
three-year bond on Wednesday, building on a resurgence in Irish
Hoping to emulate the debt market success of peer Bank of
Ireland earlier this month, AIB started marketing the
paper on Wednesday in the area of mid-swaps plus 200bp, IFR, a
Thomson Reuters unit, reported.
AIB, was once Ireland's biggest lender until it was 95
percent nationalised in September 2010. Since then Irish banks
have been shut out of the capital markets and relied on ECB
Bank of Ireland's three-year covered bond, which reopened
the country's bank debt market in mid November, was used as a
reference for pricing.
BoI's 1-billion-euro three-year deal was another watershed
moment for financial institutions from the eurozone's periphery
keen to wean themselves off ECB liquidity at affordable rates.
According to a banker involved in the deal, at 1030 GMT the
execution process was nearly complete, adding that AIB is opting
to sell a smaller offering than BOI.
"We're now going to come flat to where Bank of Ireland
priced which is a great result," he said. "AIB is a more
challenging name and so it makes sense not to match BOI."
Irish banks and corporations have been cementing their path
to rehabilitation over the past month which has resulted in a
number of transactions.
Ireland's Electricity Supply Board (ESB) raised 500 million
euros worth of seven-year debt that attracted around 6 billion
euros of demand in mid November and was followed up by Bord Gais
Eireann that sold five-year debt that was 13 times subscribed.
The Irish government has also capitalised on a sharp fall in
its borrowing costs by launching two bond swaps, its maiden
amortising bond issue and new long-term debt sales, in a bid to
position itself to exit an 85 billion euro EU/IMF bailout on
schedule next year.
($1 = 0.7733 euros)
(Reporting by Aimee Donnellan, IFR Markets, Editing by Lorraine
Turner and Louise Heavens)