The Bank of Ireland has announced plans to carry out a rights issue to raise an estimated EUR4.35 capital. The rights issues is likely to be underwritten by the Irish government and represent a reasonable discount to market price.
Full details of the rights issue will not be announced until after an agreement has been made with the underwriters, who are the Minister for Finance and the NPRFC (National Pensions Reserve Fund Commission).
Bank of Ireland is also redeeming bonds by offering a cash or stock option. The more shareholders that elect for stock the lower the capital raising will need to be. So the rights issue is tied in with the “bondholder burden sharing” scheme and the Liability Management Exercise (“LME”) that they are also running.
Full details of the Capital Raising scheme can be found on their website: