AIB plans rights issue and asset sales to meet €7.4bn capital requirement

AIB has pencilled in a rights issue for September, to help it meet its €7.4 billion post-NAMA capital requirement by the end of the year.

Addressing shareholders at the bank’s annual general meeting in Dublin yesterday, AIB executive chairman, Dan O’Connor, said that apart from the disposal of its overseas assets, the company’s plans an equity issue targeted at private investors, which will be underwritten by international investment banks or the Government.

“We have a series of actions planned. However, if we are not able to meet the regulatory requirements through these planned actions, then the Government will provide the additional capital we need.