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26/04/2010
State Takes Big Share Of BOI Under New Arrangement
The State is to take a 36% of the Band of Ireland in an agreement which will see the bank raise €3.4 billion in capital to meet new capital requirements set by the Government.
Minister for Finance Brian Lenihan welcomed the announcement, and said deal would deliver a "significant return" for the State.
“This transaction is good news for our economy, good news for the taxpayer and good news for Bank of Ireland’s shareholders and investors," Mr Lenihan said.
"The level of private sector investment is tangible evidence of the growing international and domestic confidence in both Bank of Ireland and our economy. I have stressed on numerous occasions that others have confidence in us and we need to demonstrate that confidence in ourselves. Today’s announcement shows that Ireland can and is addressing the difficulties in our financial sector.”
The institution will also buy back warrants held by the Government that would allow the State to increase its stake in the bank at a later date.
That will result in about €450m being returned to the State's coffers. A rights issue will also aim to raise an additional €1bn for the bank.
The plan also includes a rights issue of €1.9 billion, a €500 million placing with institutional investors and swapping debt for equity.
The State will convert some preference shares to ordinary share capital, and will get €491 million profit for warrants it holds.
(DW)
Minister for Finance Brian Lenihan welcomed the announcement, and said deal would deliver a "significant return" for the State.
“This transaction is good news for our economy, good news for the taxpayer and good news for Bank of Ireland’s shareholders and investors," Mr Lenihan said.
"The level of private sector investment is tangible evidence of the growing international and domestic confidence in both Bank of Ireland and our economy. I have stressed on numerous occasions that others have confidence in us and we need to demonstrate that confidence in ourselves. Today’s announcement shows that Ireland can and is addressing the difficulties in our financial sector.”
The institution will also buy back warrants held by the Government that would allow the State to increase its stake in the bank at a later date.
That will result in about €450m being returned to the State's coffers. A rights issue will also aim to raise an additional €1bn for the bank.
The plan also includes a rights issue of €1.9 billion, a €500 million placing with institutional investors and swapping debt for equity.
The State will convert some preference shares to ordinary share capital, and will get €491 million profit for warrants it holds.
(DW)
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Ireland WeatherToday:Showers today, occasional north and west of Lough Neagh, but only a few isolated light outbreaks expected for Belfast and county Down where the best of the winter sunshine is expected. West to northwest winds brisk around the coasts. Maximum temperature 10 °C.Tonight:Showers focused across northern areas of the Province, with most in the south staying dry, with a frost developing for many here. Northwest winds fresh around the coasts. Minimum temperature 0 °C.
