Allied Irish Banks BK32 AIB Mortgage Bank raises Euro 500m - 3yr ACS

  Allied Irish Banks (BK32) - AIB Mortgage Bank raises Euro 500m - 3yr ACS

RNS Number : 2399S
Allied Irish Banks PLC
28 November 2012




For Immediate Release 28^th November 2012

                 Allied Irish Banks, p.l.c. ("AIB") announces

 AIB Mortgage Bank. raises €500m, 3-year Asset Covered Securities (ACS) Bond

AIB Mortgage Bank (AIBMB) today agreed a €500 million 3-year secured ACS  bond 
issue under its €20 billion Mortgage Covered Securities Programme. AIBMB is  a 
wholly owned subsidiary of Allied Irish Banks, p.l.c. (AIB). This is the first
public ACS issue since June 2007 and marks AIB's second return to the  funding 
markets in 2012 following  the issuance of £395m  Sterling Prime RMBS in  May. 
ACS bonds are not guaranteed by the  Irish State. This 3 year deal was  priced 
at a  spread  over  mid-swaps  of  270 basis  points  and  was  over  4  times 

The total  order  book was  c.  €2.3bn with  in  excess of  170  international 
investors reflecting a well diversified geographic profile. Over 95% of demand
came from outside Ireland.

The final sizing of the transaction,  notwithstanding the level of demand,  is 
consistent with AIB's stated strategy to engage with the market in a  balanced 
and measured manner with  a series of well  placed, well timed,  appropriately 
structured and  priced transactions,  to ensure  viable funding  levels  while 
building confidence with external investors.


For further information please contact:

Enda Johnson                         Niamh Hennessy
Head of Corporate Affairs & Strategy Media Relations Manager
AIB Group                            AIB Group
Dublin                               Dublin
Tel: +353-1-7726010                  Tel: +353-1-7721382
email:         Email:

                          Forward-looking statements

This update contains certain  "forward-looking statements" within the  meaning 
of Section 27A of the US Securities  Act of 1933, as amended, and Section  21E 
of the US Exchange Act  of 1934, as amended,  regarding the belief or  current 
expectations of the  Group, AIB's Directors  and other members  of its  senior 
management about the  Group's financial condition,  results of operations  and 
business of the Group and  certain of the plans  and objectives of the  Group, 
including statements relating to  possible future write-downs or  impairments. 
In particular, certain statements with regard to management objectives, trends
in results of operations, margins, risk management, competition and the impact
of changes in  Financial Reporting  Standards are  forward-looking in  nature. 
These forward-looking statements can  be identified by the  fact that they  do 
not relate only  to historical  or current facts.  Forward looking  statements 
sometimes  use  words   such  as   'may',  'could',   'would,  'will,   'aim', 
'anticipate',  'target',  'expect',  'estimate',  'intend',  'plan',   'goal', 
'believe', or  other words  of similar  meaning. Examples  of  forward-looking 
statements include,  among others,  statements  regarding the  Group's  future 
financial position, income growth, business strategy, projected costs, capital
position, estimates  of capital  expenditures, and  plans and  objectives  for 
future operations. Because such statements are inherently subject to risks and
uncertainties, actual results  may differ materially  from those expressed  or 
implied by such forward-looking information.

These forward-looking  statements are  not guarantees  of future  performance. 
Rather, they are based on current views and assumptions and involve known  and 
unknown risks, uncertainties and other factors, many of which are outside  the 
control of AIB and are difficult to predict, that may cause actual results  to 
differ materially from any future results of developments expressed or implied
from the forward-looking statements. Factors  that could cause actual  results 
to differ materially  from those  expressed or  implied include,  but are  not 
limited to,  economic conditions  in Ireland  and international  economic  and 
sector-specific conditions, including volatility in the financial markets; the
default of a major market  participant or negative developments affecting  one 
or  more  Irish  financial  institutions;  unfavourable  economic  and  market 
conditions in  the  Irish  property  sector; the  ability  of  AIB  to  access 
sufficient funding to  meet regulatory requirements  and its liquidity  needs; 
the uncertainty over  the terms of  an extension to  the eligible  liabilities 
guarantee scheme (the "ELG Scheme") and the market reaction to the removal  of 
government guarantees;  changes  in  AIB's credit  ratings  or  the  sovereign 
ratings of  Ireland  and other  countries;  customer and  counterparty  credit 
quality; AIB's  commitments and  restrictions  under the  Credit  Institutions 
(Financial Support)  Scheme, the  National  Pensions Reserve  Fund  Commission 
Investment, the  National  Asset  Management  Agency  bank  asset  acquisition 
programme and the  ELG Scheme;  non-trading interest rates;  market risks,  as 
well as risks related to interest rates, foreign exchange rates and  commodity 
and equity  prices;  changes in  applicable  laws, regulations  and  taxes  in 
jurisdictions in which AIB operates;  risks related to the E.U.  restructuring 
plan; the valuation  of certain  financial instruments; a  change in  control; 
natural and other disasters; and effective management of capital.

AIB cautions that the foregoing list  of important factors is not  exhaustive. 
Investors and others should carefully consider the foregoing factors and other
uncertainties and  events when  making  an investment  decision based  on  any 
forward-looking  statement.  In  light  of  these  risks,  uncertainties   and 
assumptions, the  forward-looking  events discussed  in  this update  may  not 

The forward-looking  statements speak  only as  of the  date of  this  update. 
Except as required by the Central Bank of Ireland, the Irish Stock Exchange,
or applicable  law, AIB  does not  have  any obligation  to update  or  revise 
publicly  any  forward-looking   statement,  whether  as   a  result  of   new 
information,  further  events  or  otherwise.  AIB  expressly  disclaims   any 
obligation or undertaking to publicly release any updates or revisions to  any 
forward-looking  statement  contained  in  this  update  or  incorporated   by 
reference to reflect any change in  AIB's expectations with regard thereto  or 
any change in events, conditions or circumstances on which any such  statement 
is based.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCBKFDQQBDDKDB -0- Nov/28/2012 14:47 GMT
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