Under the scheme, Bank of Ireland, which includes its branches in the UK (including the banking services of the Post Office), along with its subsidiaries Bank of Ireland Mortgage Bank, ICS Building Society and Bank of Ireland (Isle of Man), will be able to use the Irish Government’s guarantee scheme to raise capital.
The scheme offers banks the ability to guarantee all deposits held by the bank as well as the ability to guarantee any new debt securities issued that are less than five years in length.
A statement released today says the BoI’s participation in the ELG scheme will further support its objective of achieving “more conservative balance sheet metrics”.
The statement says: “”Bank of Ireland welcomes the opportunity afforded by the new ELG scheme to issue guaranteed debt securities with a maturity of up to five years as the group continues to focus on maintaining a prudent maturity profile of wholesale funding.
“The group also welcomes the flexibility that the ELG scheme provides with regard to issuing un-guaranteed debt securities depending on market conditions and investor appetite.
“Bank of Ireland’s participation in the ELG Scheme will further support our objective of achieving more conservative balance sheet metrics.”