BoI offer could net €400m gain

BANK of Ireland yesterday announced that it is to make an exchange offer for up to €1.5bn of its outstanding Lower Tier 2 securities with a nominal value equivalent to €3.1 billion.

The move is designed to strengthen the bank’s capital and analysts suggest the amount raised could be as high as €700m with a minimum gain of €400m the likely outcome.

Well placed sources said the final tally will be dictated by the appetite for the offer.