Bank plans rights issue in November

BANK OF IRELAND plans a rights issue in November to buy out some of the Government’s indirect 25% stake in the lender, the Sunday Tribune reported, citing informed sources.

The move could raise the €1.5 billion necessary to limit the Government’s preference shares at 15%, the newspaper said, minimising the possibility of majority stake owner-ship after risky property loans are transferred to Ireland’s “bad bank”.

The bank received a state capital injection of €3.5 billion earlier this year. The Government is setting up the National Asset Management Agency (NAMA) to cleanse the financial sector of soured property debts.