Bank of Ireland says it has raised just over €200m from an arrangement under which holders of its debt were offered the option of taking cash or shares in the bank.
Out of total debt of €1.5 billion, holders of €852m worth of debt accepted the offer. €557m will be paid to these debt holders in cash, €61m in shares, leaving BoI with an extra €233m.
As a result, the bank will now issue just over €1.72 billion of new shares in its planned rights issue, lower than the figure of almost €1.9 billion it estimated last month.
Details of the terms of the rights issue will be announced next week, but it is expected to see shareholders offered an opportunity to buy stock at a 60% discount to the current price. The measures are aimed at boosting the lender's level of capital to meet requirements from the Financial Regulator.
Shares in Bank of Ireland closed up 18.3% at €1.68 in Dublin.
