Anglo offers to exchange subordinated debt at discount

ANGLO Irish Bank Corp offered to exchange €1.6 billion of subordinated debt at a discount, paying in new bonds at a rate of 20 cent on the euro as the nationalised lender seeks to generate capital.

And Allied Irish Banks Plc may have a debt-for-equity swap next month.

Anglo Irish will offer bondholders that don’t take up the exchange 1 cent per €1,000 face amount to redeem their floating-rate notes due in 2014, 2016 and 2017, the lender said last night. The new securities will be due 2011 and guaranteed by the Government, according to the statement.