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Bank of Ireland plans first unsecured bond issue since crisis

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(Globalpost/GlobalPost)

DUBLIN (Reuters) - Bank of Ireland <BKIR.I> plans to issue a senior unsecured bond for the first time since the financial crisis forced Ireland to take an international bailout, the bank said on Tuesday.

The bank has appointed BNP Paribas <BNPP.PA>, Deutsche Bank <DBKGn.DE>, Morgan Stanley <MS.N> and Royal Bank of Scotland <RBS.L> to manage the bond issue, which it expects will be launched in the near future, a Bank of Ireland spokeswoman said.

The deal will be the first significant senior unsecured bond sale by any Irish bank since 2009 when confidence in Ireland's banks collapsed. This forced the government to take an 85 billion euro bailout from the European Union and International Monetary Fund a year later. Bank of Ireland was the only Irish bank to escape nationalization in the aftermath of the crisis.

The bond issue is expected to be about 500 million euros ($643 million), Danske Bank senior trader Owen Callen said.

The Bank of Ireland said it expected the bond would be rated Ba2 by credit ratings agency Moody's Investors Service and BB+ by Standard & Poor's.

($1 = 0.7779 euros)

(Reporting by Conor Humphries. Editing by Jane Merriman)

http://www.globalpost.com/dispatch/news/thomson-reuters/130528/bank-ireland-plans-first-unsecured-bond-issue-crisis