EBS raises €1bn in bond transaction
The EBS has announced that it has successfully raised €1bn after issuing Mortgage Covered Securities.
The transaction was carried out by its subsidiary EBS Mortgage Finance yesterday over a period of six hours.
The transaction was over-subscribed attracting significant international participation with 71% of orders from outside of Ireland.
A total of 75 investors participated from 16 different countries.
Chief Executive of EBS Fergus Murphy said: "The success of this transaction clearly demonstrates the ability of EBS to fund outside the Government guarantee.
"The high level of interest and the diversified nature of the investors represents a strong vote of confidence in the EBS business model and the key role the Mutual has to play in the Irish Financial Services market."
EBS will pay an annual coupon of 3.875% for the bond which is equivalent to 175bps over the three-year EUR mid-swap rate.
The geographic spread of investors in the transaction was as follows: Ireland - 29%; UK - 19%; Germany - 15%; Switzerland - 10%; Rest of Europe - 22%; Asia - 5%.
The portfolio of investors was also well diversified by investor type with a particularly strong demand from a variety of investors: 39% issued to banks, 28% to fund managers, 22% to central banks and 10% to insurance companies & others.
