BoI seeks to target junior bondholders

BANK of Ireland is seeking to impose a discount of about 60% on a group of junior bondholders spared from an earlier offer two months ago.

In June the bank scrapped an offer to swap £75 million (€85.7m) of 13.375% perpetual unsecured bonds for cash or equity after some owners of the securities had “procedural difficulties”. It offered to pay £40.20 for every £100 owned, it said in a statement yesterday.

The lender withdrew its original offer two months ago as it faced a court challenge from an investor contesting the exchange of the securities, originally sold by the Bristol & West Building Society in 1991.