DUBLIN, Sept 24 (Reuters) - Allied Irish Banks raised 1 billion euros ($1.47 billion) of three-year funding on Thursday in a bond issue it said reflected the clarity which Ireland's 'bad bank' scheme has given international investors.
Investor concerns over the bank were eased last week when Dublin fleshed out plans to set up the National Asset Management Agency (NAMA) for cleansing banks of risky property assets with a book value of 77 billion euros.
AIB, which plans to raise 2 billion euros internally to try and stave off the need for more state funding, said the latest fund raising was the first senior unsecured unguaranteed bond issued by any Irish bank since a government guarantee was introduced a year ago.
'The positive reaction of the international markets by investing in unsecured and unguaranteed bonds of AIB reflects the clarity and certainty brought by NAMA,' Colm Doherty, Managing Director of AIB Capital Markets, said in a statement.
'This deal represents a very significant step towards the normalisation of the international credit markets stance towards Irish banks and bodes well for future unguaranteed issuance from the Irish financial system,' he added.
The bond was oversubscribed 2.9 times at a spread over mid-swaps of 250 basis points with in excess of 230 international investors, AIB said.
($1=.6790 euros)
(Reporting by Padraic Halpin; Editing by Greg Mahlich) (padraic.halpin@reuters.com; Reuters Messaging: padraic.halpin.reuters.com@reuters.net; +353 1 500 1504) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Investor concerns over the bank were eased last week when Dublin fleshed out plans to set up the National Asset Management Agency (NAMA) for cleansing banks of risky property assets with a book value of 77 billion euros.
AIB, which plans to raise 2 billion euros internally to try and stave off the need for more state funding, said the latest fund raising was the first senior unsecured unguaranteed bond issued by any Irish bank since a government guarantee was introduced a year ago.
'The positive reaction of the international markets by investing in unsecured and unguaranteed bonds of AIB reflects the clarity and certainty brought by NAMA,' Colm Doherty, Managing Director of AIB Capital Markets, said in a statement.
'This deal represents a very significant step towards the normalisation of the international credit markets stance towards Irish banks and bodes well for future unguaranteed issuance from the Irish financial system,' he added.
The bond was oversubscribed 2.9 times at a spread over mid-swaps of 250 basis points with in excess of 230 international investors, AIB said.
($1=.6790 euros)
(Reporting by Padraic Halpin; Editing by Greg Mahlich) (padraic.halpin@reuters.com; Reuters Messaging: padraic.halpin.reuters.com@reuters.net; +353 1 500 1504) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.