AIB Group Raises EUR625 Million By Issuing 7.125% AT1 Bond

Miriam Mukuru

Irish bank AIB Group on Tuesday raised 625 million euros ($668 million) from issuing an Additional Tier 1 (AT1) bond with a coupon rate of 7.125%.

"Initial demand from investors was strong, peaking at EUR3.2 billion, enabling the bank to reduce the coupon on the bond down from the originally envisaged interest rate of 7.625%," it said.

U.K. investors dominated the list of buyers, accounting for around 40% of the investors, while French investors formed around 20% and U.S. offshore funds formed around 15% of buyers, AIB said.

AIB on Tuesday also launched a tender offer on its EUR500 million 5.25% AT1 bond issued in 2019 and results of the tender offer will be released on April 30.

AT1 bonds are a risky form of debt which act as safety buffers if a bank gets into financial distress and its capital levels fall below a certain threshold.

Write to Miriam Mukuru at miriam.mukuru@wsj.com

(END) Dow Jones Newswires

April 24, 2024 05:11 ET (09:11 GMT)

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