BoI hires advisors Credit Suisse in bid to raise €1.3bn for new capital targets
BANK of Ireland has hired investment bank Credit Suisse to advise it on an imminent attempt to tap private investors for about €1.3bn.
But sources insisted last night that the bank's capital-raising plans had not yet been finalised and were not likely to be finalised for several days.
The comments come as BoI fights against the clock to raise another €2.2bn by the end of February so the bank can meet new capital targets.
Last week, BoI booked €700m from a successful debt buy-back exercise. Analysts say there's another "couple of hundred million" to be made from buy-backs of other debt.
The bank is expected to attempt to raise the remaining €1.3bn from a rights issue to existing shareholders and a private placement.
The bid is complicated by the fact that BoI will face a new capital assessment by the Central Bank soon after the €2.2bn recapitalisation is completed.