Bank of Ireland has raised €700m in capital through an exchange of some of its subordinated bonds for new bonds.
The bank said today that bondholders with debt originally valued at €1.4 billion had accepted its offer to take up new senior bonds with a value of around €700m. This has the effect of boosting the bank's capital position by €700m.
The bonds involved were trading at significant discounts to their original prices on the bond markets. Subordinated bonds are usually given a higher rate of interest as they run more of a risk of not being re-paid.
Bank of Ireland needs to raise an additional €2.2 billion by the end of February to meet new targets set by the Central Bank, so today's news means it is around a third of the way towards that target.
