The Bank of Ireland announced the results of its tender offers targeting all outstanding tranches of the RMBS issued by Kildare Securities Ltd. and Brunel Residential Mortgage Securitization No.1 PLC.
The Bank offered to buy back its Kildare and Brunel securitizations at between 28% and 88% of par and had anticipated the move would reduce its regulatory capital by up to €300 million ($400 million).
However, today the bank said it accepted for purchase approximately €1.1 billion in aggregate (amortized) principal amount outstanding of the notes, which has resulted in a capital gain of €350 million, according to release posted by the bank.
The tender is positive for investors because it suggests liquidity as well as a possible early exit from a generally very illiquid market, Bank of America Merrill Lynch analysts said in a report. For more color on the deal, please click this link for ASR's previous coverage on the offering.