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AIB puts bond deal on hold

AIB put a planned bond deal on hold yesterday, blaming a deterioration in the markets after the plan to issue the new ten-year mortgage-backed debt was announced less than 24 hours earlier.

Investors and traders had been waiting for the deal - expected to be up to €1bn in size - to price yesterday.

The decision to stall the process left some market watchers scratching their heads.

"I'm not aware of a decline in market conditions, but there could be a technical issue or a pricing hitch," said Gary Jenkins, a bond market analyst at LNG Capital in London.

"AIB will continue to monitor the market for suitable windows," the bank said yesterday.

The ECB is expected to come in as a buyer when the AIB bond is relaunched.