Bank of Ireland to raise billions in fresh funds
Tuesday, 27 April 2010
DUBLIN, Apr 26 (AFP): Struggling Irish lender Bank of Ireland said Monday that it planned to raise 3.4 billion euros (4.6 billion dollars) in fresh capital with the help of the government.
The state's 34 per cent stake in the bailed-out bank will rise to 36 per cent after the exercise, which will also see a private placement worth 500 million euros to institutional investors.
The state will contribute 1.04 billion euros and existing shareholders another 1.89 billion euros, the Bank of Ireland said in a statement.
The plan to raise extra funds was announced last month, aiming to strengthen the bank after its near-collapse during the global financial crisis.
Irish Finance Minister Brian Lenihan welcomed news of the group's capital raising.
"Bank of Ireland is the first of our financial institutions to emerge from the banking crisis," Lenihan said in a separate statement.
"This transaction is good news for our economy, good news for the taxpayer and good news for Bank of Ireland's shareholders and investors," he said.
"The level of private sector investment is tangible evidence of the growing international and domestic confidence in both Bank of Ireland and our economy."
The state's 34 per cent stake in the bailed-out bank will rise to 36 per cent after the exercise, which will also see a private placement worth 500 million euros to institutional investors.
The state will contribute 1.04 billion euros and existing shareholders another 1.89 billion euros, the Bank of Ireland said in a statement.
The plan to raise extra funds was announced last month, aiming to strengthen the bank after its near-collapse during the global financial crisis.
Irish Finance Minister Brian Lenihan welcomed news of the group's capital raising.
"Bank of Ireland is the first of our financial institutions to emerge from the banking crisis," Lenihan said in a separate statement.
"This transaction is good news for our economy, good news for the taxpayer and good news for Bank of Ireland's shareholders and investors," he said.
"The level of private sector investment is tangible evidence of the growing international and domestic confidence in both Bank of Ireland and our economy."