Qualified advisers answering your
Financial Questions
call 0800 092 1245

Bank of Ireland to raise €3.42 billion

The Bank of Ireland has today confirmed plans to raise €3.42 billion with a rights issue and a private placing in the offing. The company, which has suffered from the financial and property downturn in Ireland, needs to boost its capital ratio to abide by new government requirements. The sector as a whole is still struggling and the property market has yet to recover but there are signs that slowly but surely Ireland's major banks are now getting themselves back on an even keel.

There will be a €1.9 billion rights issue and a €1.54 billion private placing amongst institutional shareholders and the state. This will allow the company to increase its Tier 1 capital ratio to 8% from the current 5.3%, which would be well inside the government's stress test guidelines. There are hopes, assuming that the fund raising is successful, that this could herald the first phase in a major recovery programme required by the Irish banking system. Whether or not it will be enough to see off potential assistance for the government from the IMF and European Union in the short to medium term remains to be seen.

There is concern that the longer the Greek debacle continues the more chance that economies such as Ireland and Spain will struggle and ultimately require bailout funding from third parties such as the IMF and the European Union.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details