Permanent TSB to raise €180m by buying back securities at a discount

Permanent TSB is set to raise as much as €180m of capital by buying back residential mortgage-backed securities at a discount.

The nationalised bank, once the country’s largest home-loan lender, offered to buy back about €1.2bn of mortgage-backed securities issued by its Fastnet Securities 2 vehicle at 30c to 72.5c on the euro.

The company will raise €150m to €180m from the accord, according to confidential sources. The results of the buyback offer are scheduled to be released today.