Bank of Ireland's move to sell €200 million of subordinated bonds is a "positive surprise", brokers said today.

"We suspect that Bank of Ireland is likely to have received a significant lead order, most likely a reverse enquiry," said Philip O'Sullivan, an economist at Dublin-based NCB.

After Ireland imposed losses on subordinated bond holders across the banking sector as part of its banking bailout, Bank of Ireland is offering a 10 per cent yield on the new security.

"This is we think the first issue of genuinely ''new'' subordinated debt by the Irish banks since the crisis began, and probably the first since as far back 2005," Owen Callan, a Dublin-based analyst with Danske Bank A/S, said in a note.

"Another sign of how the Irish banks are inching out of the crisis and regaining market access, albeit the coupon required to attract investors is indicative of the still fragile nature of the Irish banking system. ''

Bloomberg