AIB says it expects to strengthen its financial position to the tune of €445m after a debt exchange, which it announced last week. AIB offered to exchange bonds denominated in euro, sterling and US dollars for new bonds.
The offer covered €900m worth of euro-denominated bonds, $400m of dollar bonds and just over £1.5 billion of sterling bonds.
In a statement, AIB said it had accepted offers to exchange bonds with a face value of just over €2.2 billion for new bonds of around €1.76 billion. The bonds are being exchanged for between 74% and 91% of their face value.
Banks have been taking advantage of steep discounts in the debt market to improve their capital cushion by buying back bonds at a discount.
