Bank of Ireland raises $1bn in return to US dollar bond market
Bank of Ireland has raised $1bn through its first US dollar-denominated debt issuance in more than two years, in a deal that drew strong demand from international investors.
The transaction attracted orders exceeding $5.4bn from around 150 investors, underlining continued appetite for Irish bank debt in global capital markets.
The bonds were priced at 93 basis points above US Treasuries, marking what the bank described as the tightest spread achieved on an Irish senior US dollar holdco issuance to date.
The notes have a maturity of six and a half years and offer a yield of approximately 5%.
The issuance represents the lender’s return to the US dollar market, having last issued in the currency in March 2024.
The bonds will count towards the bank’s minimum requirement for own funds and eligible liabilities (MREL), a key regulatory buffer designed to ensure banks can absorb losses in times of stress.
It is the third debt transaction completed by Bank of Ireland so far this year, following a €500m Tier 2 bond issued in January and a €750m senior bond in March, as the group continues to diversify its funding base.
Tony Morley, Group Treasurer at Bank of Ireland, said the level of demand reflected strong investor sentiment towards the institution.
“This issuance represents a very successful return to the US dollar market for Bank of Ireland,” he said.
“The quality and strength of demand for this bond reflects continued investor confidence in the Bank and highlights our ability to access international capital markets, building on the positive momentum from our €750m green bond issuance earlier this year.”
The deal was managed by a syndicate of international banks, with Davy, Citi, J.P. Morgan, Mizuho, Morgan Stanley and UBS Investment Bank acting as joint lead managers.
