EBS Building Society has signed a £250 million sterling, five year loan facility with a consortium of: 25 international banks. The new funds will be used to extend the maturity of an existing sterling facility and for general funding purposes", says a society spokesman.

Some £150 million will be drawn down immediately to refinance a sterling facility arranged in August 1994 at a lower interest cost. Funds drawn will carry an interest cost of 0.17 per cent over the interbank cost of funds compared with a charge of interbank rate plus 0.25 per cent on the 1994 funding. There is a commitment fee of 0.07 per cent payable on undrawn funds.

Asked if the fund raising signalled an imminent acquisition in Britain, the spokesman said: "No, there is nothing on the cards."

EBS decided to raise the funds on "prudential" grounds, he said.

"There are a lot of banks in a position to lend and looking for good opportunities. We looked for £150 million and were offered a lot more. We decided to take an extra £100 million. It is a good time to raise funds with interest rates close to the bottom of their cycle."

The facility, which was arranged by BZW and West LB Group is one of the largest ever arranged by an Irish building society. It is the seventh facility arranged by EBS according to head of treasury and funding Mr Mike Lennon, who said it was part of the society's ongoing strategy to extend the maturity of its liabilities.

The latest facility comprises a £125 million multi currency term loan and a £125 million revolving loan facility.