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AIB Group raises €625m in new capital
AIB Group has raised €625m from the issuance of a new bond to institutional investors.
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The bond, which is known as an Additional Tier 1 perpetual bond, carries an effective interest rate of 7.125pc.
This strikes me as a high yield? Can anybody who knows more about this explain it to me?
It must be a junior bond?
When the bank are paying 0% - 2% on deposit liabilities, why pay 7%+ on bond liabilities?