The bank believes it can boost its capital by more than 1 billion euros by
offering investors who hold 2.6 billion euros of junior bonds the
opportunity to swap them for equity, the Irish Independent said.
The newspaper added that the bank was also preparing for a private placement
and a rights issue in a bid to become the only Irish lender to stay out of
majority state ownership after the government pledged to recapitalise its
financial system by 24 billion euros on Thursday. [ID:nnLDE72T20R]
No one from Bank of Ireland was immediately available to comment.
The bank, which said it would work to raise cash through a combination of
capital-management initiatives, raised 3 billion euros through similar
exercises last year when its share price was at around 1 euro.
Shares in the 36-percent state owned lender closed 39 percent higher on
Friday at 30 euro cents.
Ireland's Finance Minister said Bank of Ireland will avoid majority state
ownership if they succeed in raising funds privately but the governor of the
Irish central bank said it was likely all Irish banks would end up in full
state ownership.
