Proposed Liability Management Exercise (5456H)

TIDMIPM TIDM74SV

RNS Number : 5456H

Irish Life & Permanent Grp HldgsPLC

31 May 2011

Irish Life & Permanent Group Holdings plc

Proposed Liability Management Exercise by Irish Life & Permanent plc

31 May 2011

Irish Life & Permanent plc ("IL&P") notes the statement by the Minister for Finance on 11 May 2011 with regard to burden sharing with subordinated bondholders of IL&P.

IL&P intends to launch a liability management exercise in respect of up to EUR840 million of its subordinated liabilities. This exercise is expected to be in the form of a cash tender offer. IL&P's current expectation is that the cash prices under the exercise will be 20 per cent of nominal for the relevant subordinated liabilities, save in the case of one series of zero coupon subordinated liabilities where the cash price is expected to be 8.6355 per cent of the nominal amount. No payment in respect of accrued interest will be made on any of the subordinated liabilities. The exercise will also involve noteholders' meetings to approve certain amendments giving IL&P the right to redeem the subordinated liabilities not purchased pursuant to the cash tender offer.

To the extent that eligible subordinated liabilities are not acquired pursuant to the liability management exercise or redeemed pursuant to the exercise of the call options under the amended terms of the subordinated liabilities, IL&P understands that the Government will take whatever steps it considers necessary to maximise burden sharing.

IL&P intends to launch this liability management exercise in the near future.

Separately, on 17 May 2011 IL&P prepaid three upper tier 2 perpetual subordinated loans made to IL&P in an original aggregate nominal amount of approximately EUR318 million, which generated EUR290m of core equity tier 1 capital.

Both of these liability management exercises will strengthen the quality of IL&P's capital base and will contribute to meeting IL&P's obligation to raise EUR4 billion of core tier 1 capital to satisfy the regulatory capital requirements of the Central Bank of Ireland.

The liability management exercise is expected to be subject to restrictions in certain jurisdictions, including in Ireland, Italy, the United Kingdom, France and Belgium. The jurisdictional restrictions that will apply, together with the full terms of the liability management exercise, will be contained in an offer memorandum that will be available as and when the exercise is launched.

Contact details:

Investor Relations

Shane O'Sullivan, Head of Debt IR: Tel: +353 1 2462476

Barry Bowden, Head of A&L Management: Tel: +353 1 2462478

Barry Walsh, Head of Investor Relations: Tel: +353 1 704 2678

Media

Ray Gordon, Gordon MRM: Tel: +353 1 665 0450

This information is provided by RNS

The company news service from the London Stock Exchange

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