* Bond follows landmark sovereign issue on Wednesday
* 5-year covered bond attracts 2.25 bln euro in orders
DUBLIN, March 15 Bank of Ireland sold
500 million euro ($649 million) worth of 5-year bonds on Friday
as it capitalised on the positive sentiment towards Ireland
following a landmark five-billion euro sovereign issue earlier
The bank's issue was significantly oversubscribed,
attracting orders of over 2.25 billion euros ($2.9 billion),
Bank of Ireland said in a statement.
Ireland took its biggest step yet towards exiting its EU/IMF
bailout on Wednesday by issuing its first benchmark 10-year bond
in three years to meet nearly all its funding needs through next
Bank of Ireland, which is 15 percent owned by the state, on
Friday followed suit by opening the books on a covered 5-year
bond backed by Irish residential mortgages.
Order books closed within 30 minutes after demand allowed
the issuers to lower the price to mid-swaps plus 190 basis
points from an initial guidance of plus 210 basis points, Bank
of Ireland said.
The only Irish lender to avoid full-state control, Bank of
Ireland raised 1 billion euros ($1.3 billion) in November in its
most significant bond issue in over three years.
Bank of Ireland's main domestic rival, state-owned Allied
Irish Banks, followed it later that month by raising
500 million euros through a three-year covered bond issue.
The government in January sold 1 billion euros it held in
Bank of Ireland debt.
Like all Irish lenders, Bank of Ireland is battling to
return to profitability. It reported a 40 percent drop in
underlying profit for 2012.
Bank of Ireland said it had mandated Deutsche Bank
, Morgan Stanley, Natixix and RBS to
lead manage the issue.