ULSTER Bank has issued a new $750 million (£470 million) facility for Irish and international investors. The Medium Term Note programme announced yesterday will be issued through the bank's newly created subsidiary, Ulster Bank Finance, and will offer investors an unconditional and irrevocable guarantee against their funds.

Under the programme, the bank can issue notes in all of the major currencies for up to 15 years.

Investors, it is expected, will on average take tranches of between $10 million and $15 million, and will be offered a modest premium over the current yield from government gilts, according to Ulster Bank's group treasurer, Mr Declan O'Neill. There will also be an option to list the notes on Dublin and London.

The bank has reached agreement with five international investment houses to act as dealers under the programme, which include Merrill Lynch, Morgan Stanley, Nomura, DBC Warburg and Union Bank of Switzerland. Ulster Bank's stockbroking arm, NCB Stockbrokers and NatWest Capital Markets will also act as dealers for the newly issued notes.