Bank of Ireland Releases

THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND (THE “BANK”)

The Bank announces that it has agreed to sell a portfolio of UK Infrastructure Project Finance loans, with total drawn and undrawn commitments of circa €0.2 billion to Aviva Special PFI LP, an investment vehicle established and managed by Aviva Investors, for a price of 81% of these commitments.  

The cash proceeds from this loan portfolio sale will further reduce the Bank's funding requirements, in line with the Bank's deleveraging plans and will have a broadly neutral impact on the Group's Core Tier 1 ratio.

On 24 April 2012, the Bank announced that it had completed or contracted divestments amounting to €9.5 billion (at an average discount of 7.6%).  On the basis of the sale announced today and other deleveraging initiatives in progress, the Bank expects that it will be able to complete its target of €10 billion of divestments within the overall base case assumptions used as part of the 2011 Prudential Capital Assessment Review (“PCAR”).

For further information please contact:

Bank of Ireland

Andrew Keating               Group Chief Financial Officer                     +353 (0)766 23 5141

Tony Joyce                          Head of Group Investor Relations            +353 (0)766 23 4729

Dan Loughrey                    Head of Group Communications               +353 (0)766 23 4770