AIB today raised €500 million from about 140 international investors.

The bank issued a €500 million seven-year covered bond under its € 20 billion mortgage covered securities programme. The seven year deal was priced at a spread over mid-swaps of 95 basis points at an absolute yield level of 2.33 per cent.

According to the bank, the deal was well placed across about 140 international investors from 20 countries and was almost five times oversubscribed.

This is the longest dated benchmark public covered bond issuance by AIB since 2007 and further extends its maturity funding profile.

“The level of demand for the transaction is a vote of confidence from international investors in the progress that AIB has made and further demonstrates AIB’s ability to consistently access markets at competitive pricing levels on an ongoing basis,” the bank said.