Bank of Ireland intends to raise €10 billion in funding over the next five years by issuing bonds secured against it mortgage book in the first move of its kind by an Irish financial institution.
The first tranche of funding is expected to raise €2 billion and will be secured on Irish mortgages. This will be the first mortgage bond issued under the Asset Covered Securities Act 2001.
Bank of Ireland's chief executive, Mr Mike Soden, said the programme will enable the bank to use its significant mortgage book to raise medium-term debt finance in a cost-effective manner.
Bank of Ireland will initially use its Irish mortgages as security but it is expected the programme will be expanded to include the bank's British mortgages.
The Irish element of the programme is subject to approval from Irish and British financial regulators.
Bank of Ireland has retained Barclays Capital as its structuring adviser and McCann Fitzgerald and Linklater as its legal advisers for the programme.