Bank of Ireland sells €1bn bond

Bank of Ireland has raised €1 billion in its most significant bond issue for more than three years and said it was starting to benefit from lower funding costs and a steadier economy.

Hammered by the bursting of a gigantic property bubble, Ireland and its banks were locked out of capital markets two years ago, forcing the state into an international bail-out and lenders to turn to the European Central Bank for funding.

The bond was bought “almost exclusively” by international investors and the bank will use the funds to reduce its borrowings from the ECB which currently stand at €21bn.

It was Bank of Ireland’s first public covered issuance without the help of a government guarantee since September 2009.