Thursday 25 May 2017

Bank of Ireland to skip payment as viability plan weighed

Colm Heatley

Bank of Ireland said it will skip a further coupon payment due next month, at the direction of the European Commission as it weighs the lender’s restructuring plan.

The bank won’t make payments of about €12m due March 3 on €600m worth of securities. Last month, the lender said it wouldn’t pay coupons due February 1 and February 4 on $1.2bn worth of securities.

The EU asked Bank of Ireland and Allied Irish Banks to suspend coupon payments on some securities, as it reviews the banks’ viability plan.

The lenders submitted the plans after a €7bn bailout by the Government last year.

Bank of Ireland fell 3 cents, or 2.3pc, to €1.28 in Dublin trading as of 9:20am local time, giving the lender a market value of €1.29bn.

Bloomberg

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