AIB burden-sharing to raise €1.6bn

AIB is hopeful of raising at least €1.6 billion of its re-stated capital requirements from ‘burning’ junior bondholders.

The bank — along with the likes of Bank of Ireland, Irish Life & Permanent and the EBS Building Society — is actively looking to make bondholders, or those who invested in its debt, contribute to its recapitalisation needs.

This combined effort, though having already met with opposition from various bondholders, should have the net result of reducing the amount of extra bank funding likely to have to come from the state/taxpayer.