BoI raises €233m in cash/share deal

BANK of Ireland has raised over €230 million from some if its debt-holders under a cash and share deal that lowers the amount it will have to raise under its planned rights issue.

Under the terms some lenders, owed a total of €1.5 billion, have opted to accept €557m in cash for monies due on top of €61m in shares, giving Bank of Ireland a net gain of €233m.

The bank will now issue just over €1.72 billion of new shares in its planned rights issue, lower than the estimated figure of €1.9bn it estimated it would have to raise last month to shore up its balance sheet to meet the new capital ratios set down by the Financial Regulator.