bank of Ireland 1BN new bond issuance

[DCon]

BANK of Ireland, the country's biggest lender, raised €1bn yesterday when it sold bonds for the second time this month.

The 3.5 year senior unsecured fixed rate bond sale means the bonds are due to be paid more than two years after the Government's existing guarantee expires in 12 months' time.

Although the bonds are theoretically not guaranteed by the State, yesterday's sale came hours after Finance Minister Brian Lenihan told RTE radio that the Government may extend the bank guarantee scheme for medium-term bonds issued by Irish banks.

Bank of Ireland raises another €1bn in bond issue - Irish, Business - Independent.ie

[Digout]

Very odd, I wonder who bought this junk? Anglo ?

[conservative green]

Very odd, I wonder who bought this junk?

Foreign investors took up 92pc of the issue, which was placed with 220 institutions across 26 countries.

Almost a third of the investors came from Germany and Austria, 14pc from the UK, 11pc from France, 8pc each from Ireland, Switzerland and Italy and the remainder from the rest of world. Three-fifths of the bond was issued to fund managers with a further fifth going to banks.

Bank of Ireland's sale builds on a record €866bn of corporate bond issues in Europe this year.

It was not immediately clear what the banks will do with the money they have raised; both the bank and Allied Irish Banks played down the chances of raising money to repay some of the Government's preference shares by the end of the year, analysts said last week, citing meetings with the companies.

Bank of Ireland will pay an annual coupon for yesterday's funding of 4.625pc, which is equivalent to 245 basis points over the 3.5 year EUR mid-swap rate.

It is five basis points lower than the rate paid by Allied Irish last week, suggesting investors are more comfortable with Bank of Ireland.

[Digout]

What kind of investor buys this without SCAMA being a done deal?

[toughbutfair]

Why is nobody happy that they raised a billion without the guarantee?

Surely this is a good news story?

[DCon]

Why is nobody happy that they raised a billion without the guarantee?

Surely this is a good news story?

I am worried that Lenny said the guarantee may be extended on the same day this was issued. Maybe on the QT, BOI are telling investors that the guarantee will be extended.

[toughbutfair]

He clearly stated that the guarantee that ends next year will be extended but that it will be wound down over a period of time and from what I read this billion is not covered. Presumably only money/bonds etc already with the banks at the time of the guarantee is guaranteed?

[DCon]

He clearly stated that the guarantee that ends next year will be extended but that it will be wound down over a period of time.

Is a period of time the same length as a piece of string?