Bank of Ireland plans offer at 10% for tier 1 notes, 20% for tier 2

By Jennifer Chiou

New York, May 31 - Bank of Ireland announced that it intends to start an offer for €2.6 billion of its subordinated securities.

Under the liability management exercise, the bank said that the cash purchase price will be 10% of the nominal price for tier 1 securities and 20% for the tier 2 securities.

The bank said in a release that it will not pay accrued interest.

In addition, the Bank of Ireland said that it also plans to propose amendments to the terms of the subordinated liabilities to grant a call option, allowing it to acquire the securities for a cash amount materially less than the cash tender terms.

The issuer added that it may also offer an equity alternative to subordinated bondholders incorporating both a premium to the cash alternative and an interest payment.

The release notes that the offer will reflect the minister for finance's objective of ensuring that subordinated bondholders contribute a significant element of the bank's core tier 1 capital requirement of €4.2 billion.

The Dublin retail and commercial bank added that it is continuing to work with its advisors on initiatives to meet equity capital requirements.

Questions may be directed to John O'Donovan at 353 76 623 4703 or Sean Crowe at 353 76 623 4720.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.