BoI raises €2bn in debt swap offer

BANK of Ireland raised nearly €2 billion in core Tier 1 capital after 74% of its junior bondholders took part in an early debt swap offer, with the vast majority opting for equity over cash.

As well as hitting its junior debt holders with heavy losses, the bank is launching a government-underwritten rights issue and a potential government stock placing as it scrambles to raise €4.2bn in extra capital.

Bank of Ireland had offered to buy back about €2.6bn of Tier 1 and Tier 2 subordinated debt.