Bank of Ireland Issue Stg£500 million Fixed/Floating Rate Perpetual Preferred Securities

Bank of Ireland announces that it has launched and priced an issue of Stg£500 million fixed/floating rate non-voting non-cumulative perpetual preferred securities (the "securities") to be issued by a Bank subsidiary and guaranteed by the Bank. The transaction is part of Bank of Ireland's normal capital management process.

The securities are perpetual but callable on April 3, 2017, with no step-up in coupon at that point, and have been priced with a coupon of 6.4295% and issued at par. This represents a margin of 185bps over the UKT 4.75% September 2015 bond at the time of pricing. Coupons will be paid semi-annually in arrears until April 3, 2017. The securities are callable at par at the option of Bank of Ireland, subject to regulatory approval, on April 3, 2017, and on every subsequent coupon date, and if not called, the coupon resets to a floating rate equal to 150 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
Tel:003531 - 6043526

Geraldine Deighan,
Head of Investor Relations
Tel:003531 - 6043501

Dan Loughrey,
Head of Group Corporate Communications
Tel:003531 - 6043833