Bank of Ireland to unveil rights issue

BANK of Ireland has announced plans for a rights issue to be underwritten by the state as the latest element of its overall recapitalisation effort.

Following up on its previously announced plan to make its junior bondholders share some of the burden of its fundraising needs — potentially covering as much as €2bn of the €5.2bn it needs — the bank said yesterday that it will undertake a rights issue at a price of 10c, with the exact size determinable after the results of its bond offers are known.

Regarding the timing of the rights issue, the bank said that it will be issuing its offer memorandum “shortly”.