Bank of Ireland Group PLC Credit Risk Transfer Transaction (2550U)
December 01 2021 - 08:47AM
UK Regulatory
TIDMBIRG
RNS Number : 2550U
Bank of Ireland Group PLC
01 December 2021
Bank of Ireland Group plc (together with its subsidiaries the
"Group" or "BOI")
Credit Risk Transfer Transaction
1 December 2021
The Governor and Company of the Bank of Ireland has executed a
Credit Risk Transfer (CRT) transaction which will improve the
Group's pro-forma June 2021 CET1 capital ratios by c.40bps.
The transaction will reduce the Group's credit risk exposure on
a reference portfolio of US$2.85 billion (c.EUR2.5bn(1) ) of
European and US Acquisition Finance (AF) loans, whereby the
investors assume the credit risk for US$456 million (c.EUR400m(1) )
of potential credit losses via a risk sharing structure. The
transaction supports the refinancing of the Group's existing AF CRT
transaction and improves the CET1 ratio by a net c.40bps, for a net
additional annual coupon of c.EUR7m.
The Group can add new loans to replenish repayments /
redemptions in the reference portfolio for the first eighteen
months and thereafter the coupon is scheduled to reduce over the
life of the transaction, pro-rata with the amortisation of the
reference portfolio. This transaction forms part of the range of
balance sheet optimisation initiatives that the Group previously
indicated were being progressed during H2 2021.
There is no customer impact from the transaction. No assets will
be derecognised from the Group's balance sheet and the reference
portfolio of loan assets and related customer relationships will
continue to be managed by the Group.
(1) converted at EUR1/US$1.13
Ends
For further information please contact:
Bank of Ireland
Myles O'Grady, Group Chief Financial Officer +353 (0)1 2508900
ext. 43291
Darach O'Leary, Head of Group Investor Relations +353 (0)1
2508900 ext. 44711
Mark Leech, Head of Media Relations +353 (0)87 905 3679
Forward Looking Statement
This announcement contains forward-looking statements with
respect to certain of Bank of Ireland Group plc ('BOIG plc') and
its subsidiaries' (collectively the 'Group') plans and its current
goals and expectations relating to its future financial condition
and performance, the markets in which it operates and its future
capital requirements. These forward-looking statements often can be
identified by the fact that they do not relate only to historical
or current facts. Generally, but not always, words such as 'may,'
'could,' 'should,' 'will,' 'expect,' 'intend,' 'estimate,'
'anticipate,' 'assume,' 'believe,' 'plan,' 'seek,' 'continue,'
'target,' 'goal,' 'would,' or their negative variations or similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking.
Examples of forward-looking statements include, among others:
statements regarding the Group's near term and longer term future
capital requirements and ratios, level of ownership by the Irish
Government, loan to deposit ratios, expected impairment losses, the
level of the Group's assets, the Group's financial position, future
income, business strategy, projected costs, margins, future payment
of dividends, the implementation of changes in respect of certain
of the Group's pension schemes, estimates of capital expenditures,
discussions with Irish, United Kingdom, European and other
regulators and plans and objectives for future operations. Such
forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from
those expressed or implied by such forward-looking statements.
Nothing in this announcement should be considered to be a
forecast of future profitability, dividends or financial position
of the Group and none of the information in this announcement is or
is intended to be a profit forecast, dividend forecast or profit
estimate. Any forward-looking statement speaks only as at the date
it is made. The Group does not undertake to release publicly any
revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date
hereof.
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