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Two Irish banks raise funds in transactions not seen for several years

Both transactions, made by Allied Irish Bank and Permanent TSB, were met with strong demand.

Image: stock graph via Shutterstock

Updated 11.45pm

TWO IRISH BANKS raised a total of €1 billion on the markets today in transactions not seen here since the financial collapse five years ago.

Allied Irish Bank issued €500m in fixed rate senior unsecured debt, its first move of this kind since 2009 and marks the banks full re-entry into the senior unsecured bond market.

The bank said the move was met with strong demand on the market. 99% of the issue’s allocations were secured by international investors, including those from a range of countries across Europe.

Meanwhile, Permanent TSB raised €500m through a sale of mortgage backed securities, the first such sale by an Irish bank since 2007.

Group Treasurer at the bank Kieran Bristow said that the deal reflected strong investor confidence, with the transaction being significantly over-subscribed.

This was the bank’s first issue of a mortgage backed security since 2006.

Minister for Finance Michael Noonan welcomed the move, which comes just a week after Ireland agreed to exit its bailout programme without any further supports.

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“The initial market reaction has been positive and these transactions, the first of their kind for both banks for a number of years,” he said, “are further evidence of improved international investor sentiment towards both institutions and towards Ireland.”

Originally published 22:23

Read: Newbridge Credit Union taken over by Permanent TSB >

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Nicky Ryan

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