AIB hires UBS to help raise €3bn

AIB, which is seeking to raise as much €3 billion in a share sale in the fourth quarter, has hired UBS to help advise on the process, it has been reported.

The bank also retained Morgan Stanley, JPMorgan Chase & and Goodbody Stockbrokers as advisers, the sources revealed.

AIB managing director, Colm Doherty, said he expects to raise as much as €3bn of equity from investors and the Government after selling overseas assets.

The financial regulator told the bank on March 30 to raise €7.4 billion by the end of the year, as the country’s banks grapple with soaring bad loans following the collapse of the decade-long property boom.

The advisers may underwrite the sale of shares to investors other than the Government, the sources said.

The state already controls an 18.7% stake in the bank through the National Pension Reserve Fund.

AIB last week agreed to sell its 70% stake in Polish lender Bank Zachodni WBK to Spanish banking giant Banco Santander, generating €2.5bn of capital.

Mr Doherty is also selling the group’s British division, comprising a business bank in Britain and a branch network in the North, as well as its 22.4% stake in US regional lender M&T Bank.

Mr Doherty said last Friday that the bank will have details on further sales within weeks.

UBS, JPMorgan, Goodbody, Morgan Stanley and Alan Kelly, general manager of corporate services at AIB, all declined to comment on the news.

Meanwhile, AIB may have left personal information on several thousand mortgage loan holders of its Polish unit Bank Zachodni WBK in the data room provided to bidders for the bank, which would violate Polish banking laws, the Gazeta Wyborcza newspaper has reported.

The data was left there for several days and included names of clients as well as details about the value of their loans, Gazeta, Poland’s second-largest daily newspaper, said.

The sales process was conducted in “an entirely appropriate manner,” said Catherine Burke, a spokeswoman for AIB. Ms Burke said she was unaware of the newspaper report.

Meanwhile, Bank of Ireland said yesterday that the holders of CAD$178.7 million (€133m) of existing notes agreed to exchange them for new notes valued at CAD$145.2m.

The expected settlement date for the exchange offer is September 22.


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