AIB has announced plans for a debt exchange offer aimed at boosting its financial position.
The offer covers €900m worth of euro-denominated bonds, $400m of dollar bonds and just over £1.5 billion of sterling bonds. Holders of these bonds are being invited to exchange their existing bonds for new bonds.
The offer closes on Friday evening and the bank will announce the outcome next Monday afternoon. The coupon - or interest rate - being offered on the new euro and dollar bonds is 10.75%, with 11.5% being offered for the sterling bonds.
Banks have been taking advantage of steep discounts in the debt market to improve their capital cushion by buying back bonds at a discount.
