Bondholders’ vote boost for Anglo

ANGLO Irish Bank’s plan to raise fresh capital by buying back subordinated debt at a discount — and thus share the pain of its bailout between the Irish taxpayer and international bondholders — has moved a step closer to reality, with the aforementioned bondholders showing initial support for the scheme.

A vote in London, yesterday, saw bondholders support the ‘notes purchase resolution’ debt exchange, which would see them receive a return of just 20% on their debt.

Due to the terms of the initial debt issuance the vote on the deal is having to take place on a two-tier basis. A second meeting of bondholders — relating to debt maturing in 2016 — is due on December 22.