Bank of Ireland Group today (5 June 2019) announced that it has raised £350 million of term funding through a successful sterling securitisation transaction via its UK subsidiary. The transaction was issued by Bank of Ireland (UK) plc (“BOI UK”) via the securitisation of prime, BOI-branded UK residential mortgage loans and represents BOI UK’s inaugural wholesale funding transaction. Key highlights: BOI UK successfully raised £350 million of term funding through the completion of its inaugural wholesale funding transaction via the securitisation of prime, BOI-branded UK residential mortgage loans. The transaction is structured to comply with the Simple, Transparent and Standardised (STS) criteria for securitisations. The high quality of investor demand for this securitisation underlines the Group’s ability to access diversified sources of term funding across international capital markets. The transaction provides cost efficient and longer term funding to BOI UK and demonstrates continued progress in transforming its business and delivering against its priority of improving returns. The senior tranche of the notes are rated AAA by Moodys & Fitch with a coupon of SONIA +83 bps. Lead investment banks on this transaction were Lloyds Bank Corporate Markets and Merrill Lynch International. There is no impact on BOI UK’s customers as a result of this securitisation transaction. BOI UK will continue to service these mortgage accounts and the contractual terms and conditions of these residential mortgage loans remains the same.
The Bank of Ireland has issued a SONIA-linked securitisation deal backed by prime British residential mortgages. The £350m ($445) RMBS transaction was structured to comply with STS criteria for securitisations. Rated AAA by Moody’s and Fitch, the senior tranche of the notes have a coupon of 83bps over SONIA.