AIB launches bond exchange programme

Allied Irish Bank has launched a bond exchange programme which analysts say could contribute up to €400m towards its hunt for fresh capital, a statement said.

AIB and Bank of Ireland have been buying back cheap debt to raise capital which will be depleted by the creation of "bad bank" Nama

Allied Irish has previously said it would try to sell some of its overseas assets and/or a stake in the group to a strategic investor before launching a rights issue or asking for more state help.

AIB said it could not elaborate on its statement but said it would announce the results of the offer on March 22.