UPDATE 1-Bank of Ireland raises 1 bln euros, funding improves

DUBLIN, Sept 29 (Reuters) - Bank of Ireland has raised 1 billion euros in a 3.5-year bond which it said had taken it another step towards the normalisation of funding conditions and reflected the success of state rescue measures.

The issue, which followed a 5-year covered bond issue earlier this month, was oversubscribed with an order book of 2.5 billion euros and was sold to investors from 26 countries, Bank of Ireland said.

'Today's trade is a further significant vote of confidence by international bond investors in Bank of Ireland, and the series of supportive measures enacted by the Irish State to support the Irish banking system,' it said.

Last week Allied Irish Banks raised 1 billion euros of three-year funding in a bond issue it said reflected the clarity which Ireland's 'bad bank' scheme has given international investors.

For more details of latest Bank of Ireland bond please click on

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