BoI raises €350m in fresh capital

THE Government is no longer considering forcing losses on junior bondholders in Bank of Ireland after the lender met its recapitalisation target by raising €350 million in capital yesterday.

The bank, the only domestic lender not under state control, hit its goal after it bought back securities at a discount, bringing its capital-raising for the year to the €4.2 billion required under an EU-IMF bailout.

Finance Minister Michael Noonan had warned last week that he may use emergency powers, previously deployed against bondholders in AIB, to wipe out the value of some junior bonds and ensure that target was met. He dropped the threat after the successful capital raising.