BoI debt buy-back plan to raise €1.5bn

BANK of Ireland is being linked to a further debt buy-back exercise — that could raise hundreds of millions of euro — as part of its ongoing attempts to meet its necessary re-funding targets by the end of next month.

While it has made some progress on the matter, Bank of Ireland still has another €1.5bn to find — by the end of February — in order to meet its recapitalisation targets, as set out by the Government.

The bank declined to address the matter in detail yesterday, pointing out it does not comment on speculation; but Davy Stockbrokers effectively set tongues wagging by suggesting BoI might be about to buy back a degree of its undated subordinated debt — which amounts to around €750m — in another round of capital generation.