May 20, 2024 07:51 GMT
AIB: Tender Offer, 81% Acceptance. Similar Deals Expected.
FINANCIALS
Allied Irish (AIB: A3 pos/BBB) tender offer results – 81% acceptance rate and improves AIB’s funding costs marginally. This follows a really strong run for the equity (+32% YTD, SX7P +14%) as Irish banks continue their renaissance. We’d be unsurprised to see more of these kinds of deals.
- AIB’s tendered for its AIB 1.875 ’29 Tier 2 sub debt, was EUR500m outstanding, EUR406.107m were tendered which will leave EUR93.893m outstanding.
- AIB’s 1Q24 trading statement (2-May) was positive, mentioning a “very strong performance” and confirming guidance for FY24.
- Linked to this, the bank issued green Tier 2 on 13-May at MS+190bp. The tendered bond was issued at MS+215bp in Nov-19 when it was rated Baa2/BB+ so a nice refi pickup there.
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