Figures from Bank of Ireland show that an overwhelming number of its subordinated, or junior, bondholders have so far opted to take shares in the bank rather than cash.
This means the bank has avoided outright nationalisation.
The bank gave details earlier this month of an offer to bondholders aimed at making them share the burden of recapitalising the bank. Under the plan, the bank is set to raise around €2 billion towards the €5.2 billion it needs to meet targets set by the Central Bank.
Around three-quarters of the bondholders had decided on the offer by last night's first deadline, with 95% of these opting to take shares rather than cash.
Depending on how many private investors will now buy shares in the bank, the taxpayer could now end up with a stake of between 35% and 70%.
BoI offered bondholders as little as 10% of the original value of the debt in cash, but 20% or 40% if they took shares in the bank.
The conversion price for the shares will be 11.56 cent. The deadline for remaining bondholders is July 7.
Bank of Ireland said that, based on the early figures released today, it expected the size of its proposed rights issue to be €1.78 billion, though this depends on final results of the offer.
