BoI set to announce share deal in days

Bank of Ireland is expected to announce a preference share repayment deal within the coming days, despite confusion arising yesterday as to the full extent of money it may need to cover loan losses.

BoI is likely to announce plans to raise around €500m, either this week or in the early part of next week, via a share placement. Those proceeds will be used to partially pay off the Government’s €1.8bn stake, with the balance coming from the sale of the outstanding preference shares to a third party.

The bank said it had passed the Central Bank’s latest balance sheet assessment/asset quality review, meaning it had adequate capital levels as of the end of June — and isn’t required to raise any additional funds to support its operations.