The Government has injected another €525m into the EBS Building Society via special investment shares.
These shares can be translated into ordinary shares if the EBS is converted into a company.
In March, Mr Lenihan said EBS would need a total of €875m to meet new tougher capitalisation targets set by the Financial Regulator. The Government had already put €350m of this into the building society.
The additional capital will bring the building society's core Tier 1 ratio - a measure of a financial institution's financial health - to 8% by the end of the year.
'EBS wishes to acknowledge the continued support of the Minister and the assistance of the Central Bank in Ireland in these matters and is extremely grateful to the Government for the recapitalisation,' a statement from the building society said.
Irish Life and Permanent and Dublin-based private equity group Cardinal Asset Management are in the running to take over the building society, with final bids expected by next week.
