Bank of Ireland has become the second Irish financial institution to raise finance with the backing of the Government guarantee. The bank followed AIB by raising €2bn in a sale of State backed bonds. The State guarantee runs until 2010. The four other banks guaranteed under the scheme are expected to raise finance by selling their own bonds in the weeks ahead. The government raised €4bn by selling bonds earlier and it is believed that the Department of Finance asked each institution not to seek more that €2.5bn in a bond sale. Due to the Government guarantee the bonds are rated AAA by Moody’s and Standard and Poors.
Using the buttons below you can save this article to your favourite social bookmarking site