2011070801

Credit Event

The Governor and Company of the Bank of Ireland

On 11 July 2011 the EMEA Credit Derivatives Determinations Committee resolved that a Restructuring Credit Event occurred in respect of The Governor and Company of the Bank of Ireland and that one or more related auctions would potentially be held. This page contains details of the DC Resolutions, auction documentation and other items relating to the auction for The Governor and Company of the Bank of Ireland.

Further documentation relating to the auctions will be added as it becomes available.

Event Publicly Available Information:

http://www.bankofireland.com/about-boi-group/investor-relations/releases-and-presentations/stock-exchange-releases/ http://www.bankofireland.com/fs/doc/wysiwyg/Exchange%20Offers%20and%20Consent%20Solicitations%2008%20June%202011(2).pdf

Auction Timeline: CDS Credit Event Timeline
List of Participating Bidders: List of Participating Bidders
Deliverable Obligations: Final List of Deliverable Obligations

The Exercise Cut-off Date for a Seller wishing to deliver a Credit Event Notice expired on Monday 18 July 2011. The Exercise Cut-off Date for a Buyer wishing to deliver a Credit Event Notice expired on Thursday 21 July 2011.

The Movement Option Exercise Cut-Off Date is Wednesday 27 July 2011.

The Auction Date is Thursday 28 July 2011.

For information in relation to the Irish Life & Permanent Credit Event, see the Irish Life & Permanent webpage.
Maturity Buckets: Auction / Movement Option information
Auction Settlement Terms: Senior Auction Settlement Terms for The Governor and Company of The Bank of Ireland

Subordinated Auction Settlement Terms for the Governor and Company of the Bank of Ireland

For the purposes of the 2011 The Governor and Company of the Bank of Ireland Subordinated Credit Derivatives Auction Settlement Terms (the "Subordinated AST"), the Physical Settlement Period for Subordinated Obligations (as defined in the Subordinated AST) has been shortened as set out below and differs depending on whether the Subordinated Obligations constitute Non-Delayed Settlement Subordinated Obligations (i.e. those with ISINs (i) XS0223310862; (ii) CA062786AD07; (iii) XS0487711656; and (iv) XS0487711573) or the Delayed Settlement Subordinated Obligations (i.e. ISIN CA062786AA67).

The Non-Delayed Settlement Subordinated Obligations did not have a call option inserted into their terms and conditions allowing The Governor and Company of the Bank of Ireland to redeem those bonds at less than par. There is, therefore, concern that the Non-Delayed Settlement Subordinated Obligations may become subject to a subordinated liabilities order (potentially reducing the principal amount of these bonds) which could take effect prior to the physical settlement of any RAST. To avoid this happening, the Physical Settlement Period for the Non-Delayed Settlement Subordinated Obligations is:

(a) one Business Day following the Auction Date in relation to a Customer Buy RAST (N.B. if settlement is to occur on a T+1 basis, settlement instructions will need to be sent through the clearing systems on the Auction Date);
(b) two Business Days following the Auction Date in relation to an Auction RAST; and
(c) three Business Days following the Auction Date in relation to a Customer Sell RAST.

The Delayed Settlement Subordinated Obligations are subject to The Governor and Company of the Bank of Ireland's liability management exercise. The expiration date of the tender offer for the Delayed Settlement Subordinated Obligations is 8 August 2011. Therefore, the Physical Settlement Period for the Delayed Settlement Subordinated Obligations has been shortened so that the recipients of such bonds may participate in the tender offer. The Physical Settlement Period for the Delayed Settlement Subordinated Obligations is:

(a) two Business Days following the Auction Date in relation to a Customer Buy RAST;
(b) four Business Days following the Auction Date in relation to an Auction RAST; and
(c) six Business Days following the Auction Date in relation to a Customer Sell RAST.
In light of the short Physical Settlement Periods for Subordinated Obligations,
(i) the period during which a NOPS Amendment Notice specifying one or more Subordinated Obligations as Deliverable Obligations can be effectively delivered has been shortened to one Business Day following the Auction Date in relation to a Customer Buy RAST, two Business Days following the Auction Date in relation to an Auction RAST and three Business Days following the Auction Date in relation to a Customer Sell RAST; and
(ii) if Buyer fails to deliver Subordinated Obligations during the applicable Physical Settlement Period and Seller fails to buy-in the Subordinated Obligations on the Business Day after the relevant Physical Settlement Date, Buyer will be required to deliver a NOPS Amendment Notice specifying Deliverable Obligations which are not Subordinated Obligations.
Deriv/SERV Bank of Ireland triggered transactions data Bank of Ireland Triggered Transaction Data