You are on page 1of 1

Query regarding Tier 2 capita] Pa

g e 1 off?

M u l v i h i l l , Marie

From: / John Paul Coleman [JohnPaulColeman@ANGLOIRISHBANK.ie]


Sent: 02 February 2009 16:29
To: Mulvihill, Marie
Cc: Smyth, Tony; David Hanley; Fiachre O'Neill
Subject: RE: Query regarding Tier 2 capital

Marie,

With Tier 2 capital the Bank has two forms of securities issued these are Lower Tier II (LT2) and Upper Tier II.

LT2 the Bank has issued all have a final maturity date and therefore fall into the dated subordinated category'
which is covered by the Bank guarantee scheme. The coupons on LT2 cannot be deferred and most be paid
at each coupon date
o The Bank has 5 LT2 deals outstanding these are
€750 million Floating Rate Subordinated Notes 2014
US$.165 million Subordinated Notes Series A 2015
US$ 35 million Subordinated Notes Series B 2017
€500 million Floating Rate Subordinated Notes 2016
€750 million Floating Rate Subordinated Notes 2017
o In total the Bank has €2,112 million outstanding at 30 t h September 2008 of LT2
> Upper Tier II that the Bank has issued is perpetual bonds i.e. they do not have a final maturity date.
Unlike LT2 the coupons on Upper Tier II can be deferred but are cumulative i.e. if you miss one
coupon payment at the next coupon payment date you most pay the two coupons. Upper Tier II is not
covered under the Bank Guarantee Scheme as it is perpetual
o The Bank has one Upper Tier 2 GBP300miilion with a value of €385milIion at the 3 0 t h
September 2008.

if you need any additional information please let me know.

Regards,
John-Paul

F r o m : Mulvihill, Marie [mailto:Marie.Mulvihill@finance.govJe]


S e n t : 02 February 2009 15:26
T o : John Paul Coleman
Cc: Smyth, Tony
S u b j e c t : Query regarding Tier 2 capital

John Paul

We have received a query regarding the tier 2 capital securities on Anglo Irish Bank's balance sheet. I've had
a quick look at the preliminary results as at 30th September 2008 but can't locate a break down.

I would be grateful if you could outline what makes up the Tier 2 capital and whether it is covered by the Bank
GuaranteeScheme.

Many • harks