Allied Irish Banks Finalizes Note Repurchase
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Loading... - Alice Barone
- 04 Dec 2024
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Allied Irish Banks, p.l.c. (AIB) has announced the successful completion of a strategic repurchase of portions of three series of its subordinated notes. This transaction, which involves repurchasing the notes at a discount to par, is set to settle on Thursday, with AIB indicating that the repurchased notes will be promptly cancelled thereafter.
The repurchase includes the following:
i. £1,000,000 of its £500,000,000 Subordinated Callable Fixed/Floating Rate Notes due in 2035.
ii. €24,985,000 of its €500,000,000 Callable Subordinated Step-Up Floating Rate Notes due in 2035.
iii. £71,505,000 of its £368,253,000 12.5 percent Subordinated Notes due in 2035.
Following the cancellation of these notes, the outstanding amounts will be significantly reduced to £136,000, €300,000, and £7,355,000, respectively. Prior to the repurchase and cancellation, the outstanding nominal amounts were £1,136,000 for the Subordinated Callable Fixed/Floating Rate Notes, €25,285,000 for the Callable Subordinated Step-Up Floating Rate Notes, and £78,860,000 for the 12.5 percent Subordinated Notes.
In a statement, AIB expressed its willingness to engage in discussions regarding potential further repurchases with holders of the remaining outstanding notes after the settlement process is complete. This proactive approach reflects the bank's commitment to effective treasury management and optimizing its capital structure.
This announcement is classified as inside information under the Market Abuse Regulation (EU) 596/2014. Mark Whelan, Head of Funding and Liquidity at AIB, released the information in compliance with these regulations, ensuring transparency and adherence to legal obligations.
AIB has clarified that this move is part of its treasury management activities and does not constitute an offer or invitation to acquire any notes. The bank has also advised that the distribution of this announcement may be subject to legal restrictions in certain jurisdictions. It urges anyone in possession of the announcement to inform themselves about and comply with any such restrictions.
As AIB continues to navigate the complexities of the financial landscape, this note repurchase is a strategic step towards enhancing its financial position and maintaining a robust capital framework.
