IRISH Permanent is borrowing £150 million sterling. The money will be used to support further lending in Britain and in Northern Ireland, according to Mr Michael Torpey, general manager at Irish Permanent Treasury.

The loan, which was arranged by Merrill Lynch, is very keenly priced, he added. It will cost Irish Permanent only one twentieth of a percentage point more than the three month inter bank rate (Libor). The three year floating rate note was issued at a price of 99.989 per cent.