We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
BANK OF IRELAND has raised €1 billion in a bond auction – becoming the first bailed-out lender to activate funding on the open markets without government assistance.
The bank raised the funds in an auction yesterday, at an interest rate of 3.125 per cent.
The funds mean the bank can become less reliant on funding from the European Central Bank.
The auction attracted significantly more demand than was needed, with investors offering up to €2.5 billion to the bank.
The interest from lenders prompted the bank to accept twice as much as it had originally anticipated; the bank had only sought to borrow €500 million.
German and Austrian investors accounted for 37 per cent of the cash raised in the auction; only 2 per cent came from domestic lenders.
Finance minister Michael Noonan welcomed the news, saying it was the first time since October 2010 that Bank of Ireland had been able to access international money markets.
“The commitment from investors of €1 billion in unguaranteed Irish bank paper is important in decoupling the Sovereign from the banks,” he said.
“It is a step towards their full return to wholesale markets, independent of State support.”
The minister added that the demand for the bonds illustrated “an expression of confidence in the Irish economy”.
To embed this post, copy the code below on your site
Fantastic stuff, good to see external faith, these small steps is what our banks need, just as long as they get carried away again.
fantastic stuff my arse
sure why wouldnt anyone not jump on the sale when the Irish worker/taxpayer bails out the banks every time they mess it up
yeah i fecked up again(banker to gov)
nwo prob heres another trillion yoyos(gov to banker)
Bet they’re not going to repay any government support
Actually Trish Bank of Ireland are paying back the government with huge interest. I’m not defending them but the bailouts weren’t free money. The state is making plenty from them.
Without state support?
So I take it that the customers, that they shaft on a daily basis with their interest rate hikes and such like are from outside the state?
”Without” state support?
More like ”With” life support, from the citizens of Ireland.
A close colleague of mine fell into arrears on his mortgage with this so called ”bank” through no fault of his own and all I can say is that they treated him with nothing more than antagonistic, insightful, contempt.
Without state support?
from the bank where the civil service and state does its banking.
Anyone else find it ironic that we as a Nation was slated for borrowing beyond our means and now BOI borrow twice what they actually needed?
Jay
I was just going to comment on the same irony. I can not see how borrowing this kind of money is a good thing . We are being told to live within our means and even at that it is a struggle for some of us . Then the bank borrows twice its intention. ?
Crooks!! U need €3000 to get interest on ur savings!! I want nothing to do with banks!! They keep taking but the give nothing back!!
Should something go wrong, will these ‘unguaranteed’ bond holders be paid?
“Unguaranteed” they say.. Nothing is Unguaranteed when it comes to the Irish Taxpayer..
Wanted only 500m. Offered 2.5billion. Lol. Risk free lending guaranteed by the irish people.
Twice what they “intended”or expected to be able to borrow Jay, not needed. They are still largely reliant on ECB and ICB funds.
They need it for the staff pensions.
Have the taxpayer now guaranteed this also??
Frank
You have the neck to return to the fray after your recent contribution was deleted but not before I mailed it to interested parties who are now taking actions on it.
@ Danny
Ive nothing against red heads, for the record.
Ill make it simple for you and them- Legislation to be:
Any official who is employed in a Financial institution where the state is the majority shareholder, will have all income over *** K levied at a rate of 99.9%
Just like the meerkat add : )
Nigel, that is so dumb.
It’s not dumb, its simples
Nigel
I want my money back…that is….the money the State invested in the commercial Banks to keep them afloat. Your idea is to run the very Senior Managers out and have these huge and complex Organisations run by less than qualified people. That way….according to your plan I or we don’t get our money back. Clever thinking Nigel…….old boy!
Then we get that elusive debt deal, you can be sure that the ecb will insist on taking the shares the govt currently holds in our banks. We will be glad then that boi managed to stay independent.
You do all know that the Bank of Ireland is NOT an irish bank!!!
That bank of ireland borrowing without state support – such a misleading heading. Bank of Ireland knows well it is one of the banks that the Government and I mean the curretn govt alias Michael Noonan pledged to keep recapitalised to the standards set out in the memo of understanding signed by him with the EU and IMF in May 2011 a Memorandum another internatinal agreement charging the public funds and not a piece of legislation to implement it. We may give out about the germans but one message coming throug form all their court actions on the esm and so forth namely – it si nto A merkel who rule but the bundestag or put anor way the People thorugh their elected reps. But the dail here is nothing mroe than a puppet pulled by the Govt wiht the whip.
I see that most of the cash lent to bank of ireland by german and austrian investors. I wonder why? ??
Oh yes sure dont they know that Ireland will have to come back to A Merkel (with the blessing of the bundestag) for another bail out a load of whihc will ahve to go to the banks – bit like greece at moment. What really make my furious is our esteemed politicina and leaders. Try and remmebr anyone reeadin the one thing a politicina will alwaya take heed of and for – your VOTE. And next time around – Im calling on any one interested enough to lobby locally and get petitions locally – I am putting feelers out – and if they your loacl rep starts seeing loads and loads of signatured of belonging to voters = the whip may stop cracking so thouroughly .
have your say