AIB raises €625m from bond market

Strong demand enabled the bank to reduce the annual interest rate

Colin Hunt, chief executive of AIB, said ‘strong funding and capital ensure AIB is well positioned for sustainable growth’. Picture: Fergal Phillips

AIB raised €625 million from the bond market on Tuesday with strong demand allowing the bank to reduce the amount of interest it paid to investors.

Investor interest peaked at €3.2 billion causing the bank to drop the coupon, or annual interest rate, from 7.62 per cent to 7.12 per cent.

The investors in the additional tier 1 bonds (AT1s) were primarily asset managers. UK investors made up 40 per cent of the book, with ...