BOI plans to raise €1.1bn in public rights issue

BANK of Ireland last night announced its plan to raise €1.1 billion in a public rights issue from existing shareholders as part of its €3.4bn capital-raising programme.

Under the terms, shareholders can buy three shares for every two held at 55 cent per share which is a 64% discount from yesterday’s closing price of €1.53.

The offer closes on June 8 at 11am the bank said in a statement last night.

The total fundraising exercise of €3.4bn to shore up the banks depleted balance sheet is split 50/50 between the state and the private sector. The state has already committed €1.04bn to the funding programme and it will contribute a further €0.63bn under the rights issue.

Shareholders holding 1,000 shares will under the terms of the issue be able to buy 1,500 new shares at a total cost of €825, the bank said in its statement last night. Details of the plan will be forwarded to shareholders shortly and a successful take up will bring the fundraising to a conclusion.