Anglo Irish debt swap agreed

Anglo Irish Bank has persuaded investors to replace bonds it is due to repay in 2016 with debt due in 2011, lowering its cost of funding ahead of the Irish bailout.

The bank has offered holders of the 2016 bonds floating rate notes which mature in 2011, according to the London Stock Exchange.

The interest costs on the new bonds will be linked to prevailing ultra-low interest rates, rather than the longer-term rate on the 2016 debt.