Bank of Ireland successfully raises £350m of long term secured funding

05 June 2019

Bank of Ireland Group today (5 June 2019) announced that it has raised £350 million of term funding through a successful sterling securitisation transaction via its UK subsidiary. The transaction was issued by Bank of Ireland (UK) plc (“BOI UK”) via the securitisation of prime, BOI-branded UK residential mortgage loans and represents BOI UK’s inaugural wholesale funding transaction.

Key highlights:

• BOI UK successfully raised £350 million of term funding through the completion of its inaugural wholesale funding transaction via the securitisation of prime, BOI-branded UK residential mortgage loans. The transaction is structured to comply with the Simple, Transparent and Standardised (STS) criteria for securitisations.
• The high quality of investor demand for this securitisation underlines the Group’s ability to access diversified sources of term funding across international capital markets.
• The transaction provides cost efficient and longer term funding to BOI UK and demonstrates continued progress in transforming its business and delivering against its priority of improving returns.
• The senior tranche of the notes are rated AAA by Moodys & Fitch with a coupon of SONIA +83 bps.
• Lead investment banks on this transaction were Lloyds Bank Corporate Markets and Merrill Lynch International.
• There is no impact on BOI UK’s customers as a result of this securitisation transaction. BOI UK will continue to service these mortgage accounts and the contractual terms and conditions of these residential mortgage loans remains the same.