Bank of Ireland set to raise over 500 mln euros of equity-source
DUBLIN, Nov 26 (Reuters) - Bank of Ireland (Irish: BIR.IR - news) will raise between 500 and 600 million euros of equity as early as next week as part of a key refinancing of 1.8 billion euros of state preference shares, a source familiar with the deal said on Tuesday.
The 15 percent state-owned bank faces a March 2014 deadline to refinance the shares before a clause under its state bailout kicks in, increasing the cost of buying them back by 25 percent, or 450 million euros.
It will raise the equity through a placement, rather than a rights issue, to retire around a third of the preference shares with the balance made up from the sale of a debt instrument to private investors at a profit to the state, the source said.
A spokeswoman for Bank of Ireland declined to comment on the placement and said the lender was considering a range of options for dealing with the preference shares.