Bank of Ireland Issue Stg£350 million Fixed/Floating Rate Subordinated Notes due 22 January 2018

Bank of Ireland announces that it has launched and priced an issue of £350 million fixed/floating rate subordinated notes due 2018 ("the notes"). The transaction is part of Bank of Ireland's normal capital management process. Davy, RBS and UBS Investment Bank are joint lead managers on the transaction.

The notes have been priced with a coupon of 4.875% and issued at 99.271%. This represents a margin of 62 bps over the UKT 5% 2014 bond at the time of pricing. Interest will be paid annually in arrears until 22 January 2013. The notes are callable at par at the option of Bank of Ireland, subject to regulatory approval, on 22 January 2013, at which point, if not called, the coupon resets to a floating rate equal to 73 bps over three month sterling LIBOR.

Application will be made to the Irish Stock Exchange for admission of the notes to the Official List. Stabilisation in accordance with article 9(2) of Commission Regulation (EC) No. 2273/2003 implementing the Market Abuse Directive (2003/6/EC).

Enquiries:

Brian Kealy,
Head of Capital Management
003531?6043526

Geraldine Deighan,
Head of Investor Relations
003531?6043501

Dan Loughrey,
Head of Group Corporate Communications
003531-6043833