Bank of Ireland has pulled out of a multi-million euro loan agreement with a British pornography distribution firm, saying it had "never intended to cause offence" by the deal, writes Joe Humphreys.
In a statement the bank said it was also reviewing its policy on ethical investments and decision-making after outraged customers threatened to boycott the financial institution over its links with Remnant Media.
The London-based media acquisitions firm had acquired some £5 million (€7 million) from Bank of Ireland to purchase 45 magazine titles from British publisher Mr Richard Desmond last week.
Remnant is planning to become the first pornography company to float on the London Stock Exchange. The bank claimed it was not an investor in Remnant, but that it had only arranged a loan for the firm through its UK investment banking arm, together with another large financial institution.
"The loan was for the purchase of a business operating in a legal and regulated industry," the bank said.
A spokesperson for Remnant was unavailable for comment last night.
The U-turn follows strong criticism of the deal from, among others, the National Women's Council of Ireland, which had said it would be advising its members to close any accounts they had with the bank unless it withdrew its involvement with the sex industry.
The Labour Party spokeswoman on finance, Ms Joan Burton, who had called on the bank's directors to reconsider the deal, said she was "delighted" with last night's announcement.
She added that the State needed to develop its own ethical investments policy in relation to the National Pension Reserve Fund as no such policy existed.
In its statement Bank of Ireland said the deal had caused "considerable public debate in the bank's home market, and a significant amount of reaction has been received from a number of key constituencies. In light of this reaction and, as Bank of Ireland values the views of its customers, the bank has informed Remnant Media that it does not wish to continue with its participation in the deal."