ALLIED Irish Banks has issued $89 million (£55.6 million) of subordinated floating rate notes. It has also repurchased $50 million of its undated variable rate notes. These transactions are part of the bank's ongoing management of capital, an AIB spokesman said.

The notes rank as Tier 2 capital. Due in September 2006, they are priced at par, with a spread of 37.5 points over three months US LIBOR up to September 2001, and the spread widens to 87.5 points thereafter.

However, this higher rate need not be paid as AIB has a call option on the notes beginning in September 2001.