AIB in debt swap

AIB said today it has raised about €1bn in a debt swap exercise with its bondholders which was initially announced earlier this month.

In a statement to the Irish Stock Exchange, the bank said it had accepted offers to exchange six series of Euro and Sterling denominated Tier 1 and Tier 2 securities for the equivalent of circa €1.3bn of new Lower Tier 2 capital qualifying securities.

"The equity accretion for AIB Group arising from the exchange offers is expected to be circa €1bn," the company said.

The move bolsters AIB's ability to absorb bad debts arising from its property lending portfolio, with the Lower Tier 2 bonds offering a greater level of security.