BANK of Ireland is seeking to impose a discount of about 60% on a group of junior bondholders spared from an earlier offer two months ago.

BANK of Ireland said yesterday it has pulled the exchange offer for holders of its 13.375% unsecured perpetual subordinated bonds worth £75 million (€83.90m) after some holders of the bonds encountered what the bank said were procedural difficulties when they attempted to take part in the exchange.

BANK OF IRELAND has defended the burden-sharing element of its capital raising plan in the face of a fresh legal challenge from British-based bondholders over the matter.