DUBLIN Jan 22 Allied Irish Banks was
poised to raise 500 million euros ($665 million) via a
three-and-a-half-year bond on Tuesday, the state owned lender's
second issue in a matter of weeks as it gradually returns to
regular market funding.
Ireland's main banks have followed the sovereign back into
capital markets in recent months, over two years after they lost
access, forcing the state into a bailout and lenders to turn to
the European Central Bank (ECB) for funding.
AIB raised 500 million euros through a three-year sale in
November, the first time the bank issued a bond backed by Irish
mortgages and without the assistance of a state guarantee since
While that issue was sold at mid-swaps plus 270 basis
points, Tuesday's slightly longer-dated paper was priced at
mid-swaps plus 185 basis and attracted more than 2 billion euros
worth of orders, IFR, a Thomson Reuters unit, reported.
AIB - which set the state back over 20 billion euros during
the financial downturn, the most handed out to any lender still
open - said last year that it hoped to tap covered bond markets
two or three times this year.
Domestic-owned banks in Ireland saw their reliance on ECB
funding fall by 6.5 billion euros to 48.7 billion in December,
almost half the level it stood at two years ago, Ireland's
finance department said last week.