ACCBank has signed a €440 million (£346.5 million) multi-currency revolving credit facility arrangement with a syndicate of 22 European banks. This is its first entry into the European syndicated loan market. The bank had planned to raise €300 million but it was over-subscribed by €140 million and ACCBank decided to take up the full offer. The facility will have a life of 3.5 years and the margin will be 15 basis points over euribor from the flotation of the merged ACCBank and TSB, or 12 months from signing, and 18 basis points thereafter.

The funds will be used to replace existing funding due to mature shortly and "to support the strong demand for credit across our key market sectors, enabling us to continue to provide competitively priced loans to customers", said Mr Colm Darling, ACCBank's chief operating officer.

The facility has been co-arranged by ABN-Amro Bank NV and Barclays Capital.