Allied Irish Banks, p.l.c. - Tier 1 Capital Raising E500m 7.5% Step-up Callable Perpetual Reserve Capital Instruments

Business Wire, Feb 5, 2001

Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--Feb. 5, 2001

Allied Irish Banks, p.l.c. (NYSE:AIB;AIBPR;FMBPR) today announced the issue of E500 million 7.5% Step-up Callable Perpetual Reserve Capital Instruments, dated 5 February 2001. Details of the issue are as follows:

Issuer Allied Irish Banks, p.l.c.

Amount Euro 500 million

Lead Manager(s) Barclays Capital and Lehman Brothers

Coupon 7.5 percent annually to 28 February 2011;

thereafter floating

Re-offer Spread 10 year German Bund 262.3 bps

Issue Price 100.069 per cent

Term Perpetual.

Redeemable at par at option of issuer,

subject to prior consent of the Central Bank

of Ireland, on February 28 2011 and on every

coupon date thereafter

Step-Up After 28 February 2011, the coupon steps up

to 333 bps over 3-month Euribor

The issue qualifies as Tier I Capital. The additional capital will provide more flexibility in financing balance sheet growth and will strengthen group and parent capital ratios. The AIB Group Tier 1 ratio is estimated at approx. 7% following completion of this transaction.

This notice is not an offer of securities for sale in the USA, the securities may not be offered or sold in the USA, absent registration under the Securities Act of 1993 or an exemption from such registration.