AIB junior bondholders face up to 90% discount

JUNIOR bondholders in AIB have been offered 10%-25% of the value of their investment, in the first of a series of moves to force investors to share the burden of bailing out local banks.

The Government is pushing on with a plan to generate around €5 billion by imposing losses on subordinated bondholders in the banks despite a legal challenge by investors in state-owned AIB.

If the AIB offer were fully subscribed it would generate around €2bn, the bank said.