BANK OF IRELAND EXCHANGE LOWER TIER 2 SECURITIES
Bank of Ireland today announces that it has completed an Exchange Offer for any and all of the outstanding notes relating to five Lower Tier 2 securities (three Euro securities and one each in Sterling and US Dollars) with a nominal value equivalent to circa €2.9 billion.
The securities exchanged have a nominal value equivalent to €1.62 billion. These securities will be exchanged at a discount into the following new securities
- €978 million, 10% coupon, maturity 12 February 2020
- £197 million, 10% coupon, maturity 12 February 2020
The equity accretion for the Bank of Ireland Group from the Exchange Offer is expected to be circa €405 million.
Including the impact of the exchange offer on a proforma basis the estimated capital ratios of the Group at 30 September 2009 would have been:
| Pro forma | Reported | |
|---|---|---|
| Equity Tier 1 | 7.0% | 6.6% |
| Core Tier 1 | 10.5% | 10.1% |
| Total Tier 1 | 11.4% | 11.0% |
| Total Capital | 14.5% | 14.5% |
The successful completion of this Lower Tier 2 Exchange Offer represents another meaningful step in strengthening Bank of Ireland's balance sheet and capital position.
Ends
11 February 2010