Irish Life & Permanent has announced details of its plans to impose losses on some of its subordinated bondholders.
Earlier this week, IL&P, Bank of Ireland and EBS said they planned to make subordinated, or junior, bondholders share the burden of recapitalision.
Subordinated bonds usually pay a higher rate of interest as they run more of a risk of not being re-paid.
IL&P is offering to buy back around €800m of junior debt for around 20% of the original value, which would raise around €670m towards the €4 billion it needs to meet targets set by the Central Bank. It is offering 20% to bondholders who agree to the proposal by a set deadline, with 17.5% for those who agree by a later deadline.
IL&P will also take steps to acquire any bonds not taken up under the offer for €1 for every €1,000.
