AIB returned to the bond markets this afternoon, with a €500 milion covered bond five year benchmark transaction. It is the second time the bank has tapped the covered bond markets for funding this year and is a further sign of Irish banks’ ability to raise money in the wholesale markets, rather than relying on the European Central Bank for funding.

The deal was priced at a spread over mid-swaps of 180 basis points, and according to the bank, was “ well placed” across approximately 90 international investors.

The bank said that the deal “ supports AIB’s stated objective to engage with the market in a balanced and measured manner”.

In January, the bank issued €500 million at a yield of 2.644 per cent, which was followed in March by a €500 million five year deal from Bank of Ireland.

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