Irish Life & Permanent plc raises US $1.75 billion in first Irish bond issue under new Government Guarantee Scheme [ELG Scheme]

Group CEO Kevin Murphy describes success of issue as “vote of confidence” in Group and the new Guarantee Scheme

Friday 8th January 2010. Irish Life & Permanent plc has confirmed that it has raised US $1.75 billion through the issue of a public fixed rate bond. The bond was issued for a term of 3 years and was priced at a margin of 165bps over US dollar swap rates. The issue was significantly oversubscribed, attracting strong international support from investors which included leading institutions in the United States, Europe and Asia.

This is the first bond to be issued by an Irish financial institution under the terms of the new Eligible Liabilities Guarantee Scheme, which commenced in December 2009 and which is operated by the National Treasury Management Agency (NTMA). Liabilities guaranteed under the ELG Scheme can have a maturity of up to 5 years. It is also the first public term debt issue to US investors by Irish Life & Permanent plc.

The issue follows an extensive investor road show undertaken by senior Executives in Irish Life & Permanent plc in the United States, Asia and Europe in the weeks before Christmas. The issue was co-ordinated by Irish Life & Permanent Group Treasury. Lead managers were J.P. Morgan, Nomura and Deutsche Bank.

Speaking today Irish Life & Permanent Group Treasurer Michael Torpey said; “We are very encouraged by the reaction to the issue from investors, particularly those in the US and Asia who are perhaps a little less familiar with the Irish market. “

Irish Life & Permanent Group CEO Kevin Murphy said; “The success of this issue is very encouraging for the Group and also for the new Guarantee Scheme. It reflects the improving sentiment towards Ireland and Irish debt, which was evident through last year, and upon which I believe we can build further over the course of 2010.”

Further Information:
Ray Gordon
Gordon MRM
Ph: 087 2417373