AIB raises additional €500m to repay bailout

Economy, Finance | Fri 27 Nov | Author – Business & Finance
AIB William Murphy

AIB today successfully agreed to issue €500m fixed rate resettable AT1 perpetual contingent temporary write-down securities.

The transaction was arranged by Morgan Stanley, Deutsche Bank, Bank of America Merrill Lynch, HSBC, Davy and Goodbody Stockbrokers and attracted approximately €4.75bn of total demand from a range of international investors.

The coupon for the initial fixed rate period until December 2020 has been fixed at 7.375%.

The bank hopes to be in a position to return €1.7bn of capital to the State by the end of 2015.

Bernard Byrne, CEO, AIB, said: “The outstanding success of our two recent capital raising transactions is very encouraging. The results demonstrate market confidence in AIB as an issuer. The significant participation by overseas investors, in both transactions, is an endorsement and acknowledgement of the progress that the Bank has made in recent years in restructuring and repositioning itself as a sustainable, profitable and investable business.

“These issuances are key stepping stones in ensuring the completion of the simplification of our capital structure by the end of 2015. This will enable the repayment of capital to the State and positions us well for a return to private ownership,” adds Byrne.

Photo: William Murphy