Anglo Irish Bank Corporation (AIBC) signed a euro1.5 billion ($1.37 billion) Euro-MTN programme on 15 August. Deutsche Bank is the arranger. The signing comes at the end of a hectic year for the issuer, as John Bowe, head of debt capital markets at AIBC, explains. He says: "The programme has been in the pipeline for about 12 months now, but it's been a busy year for us, with both tier one and tier two fund raising and a syndicated loan in June. It has only been in the last few months that we have begun to work in earnest on the MTN facility." But now the MTN shelf is in place, Bowe can already see the advantages. He says: "The MTN product is one that very much appeals to us. It will allow us to diversify our funding and reach new investors. We have traditionally only used the capital markets to raise regulatory capital. The programme will also give us added flexibility and facilitate lengthening the maturities on our liabilities side." With limited experience in the market, AIBC will tread cautiously. Bowe says: "We have no debut trade planned but will look to private placements initially. We would certainly consider a public transaction in the future but it is currently not on the agenda." Mike Bransford, vice president, Euro-MTNs at Deutsche Bank, believes that AIBC have all the right qualities needed in order to succeed in the MTN market. He says: "They have issued stand-alone subordinated debt already and are looking to become more active and visible in senior debt. The issuer understands the mechanics of the Euro-MTN market and so they should be responsive and consistent with trade enquiry." The arranger is joined on the dealer panel by ABN Amro, Banc of America Securities, Barclays Capital, BNP Paribas, Commerzbank Securities, Davy Stockbrokers, JPMorgan, Merrill Lynch, Royal Bank of Scotland, Tokyo-Mitsubishi International and Westdeutsche Landesbank.
August 24, 2001
