merrion street

The raising of €500m by AIB through a 3 year bond issuance marks another important step in our goal of returning our banks to full independence. This bond issuance by AIB comes at the end of a very successful month for Ireland on the international bond markets which has seen significant demand for Irish debt and the NTMA, AIB, BOI, Bord Gais and ESB all raise money at competitive rates.

Investors are reacting positively to the actions that we are taking to return our economy to growth, to restore order to our public finances and to rebuild our international reputation. Our banks have been restructured and recapitalized and today’s issuance by AIB, the first since 2007, is further evidence of the strengthening and normalization of our banking system.

Today’s bond was priced at a spread over mid-swaps of 270 basis points, was four times oversubscribed and the total order book consisted of over 170 international investors, which reflects a well-diversified geographic profile. This deal is a continuation of the resurgence seen in recent months of Ireland in international capital markets and the pricing of the transaction emulates that achieved by Bank of Ireland last week.