Monday 18 December 2017

BoI hires advisors Credit Suisse in bid to raise €1.3bn for new capital targets

Laura Noonan

Laura Noonan

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.

Irish Independent

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