IRISH Permanent has issued a five-year fixed-rate bond to raise £50 million. Issued through a subsidiary, Irish Permanent Treasury, the Irish pound bond was priced at 98.96p per 100p invested to produce a semi-annual yield to investors of 7.13 per cent.

The issue was placed with domestic and overseas investors by Davy stockbrokers and Bank of Ireland Group Treasury. Placed at 0.4 of a percentage point over the 6 1/2 per cent five-year Treasury bond, the bond carries an annual coupon of 7 per cent. The fixed-rate funds were swapped into floating rate funds to match the company's mortgage lending.

Irish Permanent's head of treasury Mr David Gantly said the fund-raising was part of an ongoing programme and the timing reflected the favourable terms currently available on the market.