The Government has put another €6 billion into AIB to enable it to meet capital targets set by the Central Bank ahead of the July 31 deadline.
AIB needed to raise a total of €14.8 billion. Yesterday, it announced that the State's stake had risen to 99.8% after the issue of €5 billion of new shares to the State, through the National Pensions Reserve Fund Commission.
But that still left the bank short of its target, resulting in the need for today's €6 billion. The Government will not receive any new shares in AIB in return.
AIB said the Central Bank had confirmed that it had now met its capital requirements.
Meanwhile, the bank's executive chairman has said banks must charge more for credit if they are to achieve commercial viability.
David Hodgkinson told the MacGill Summer School in Glenties that while this was a very unpopular concept, given the amount of taxpayers money injected into the banks, it was not possible to build a sustainable future for any bank lending funds without receiving a return.
'We absolutely must do much better at making credit accessible but we cannot continue to misprice risk,' he said.
Mr Hodgkinson said it must be acknowledged that a return to more normal banking conditions requires concerns about the euro zone debt crisis to abate.
Fairfax takes 9% stake in BoI - report
Canada's Fairfax Financial Holdings and US buyout firm WL Ross & Co will each take a 9% stake in Bank of Ireland after their investment this week, the Toronto-based company has told the Irish Independent.
The two were among a group of investors who bought a €1.1 billion stake in the bank on Monday. Following the result of a rights issue yesterday, their combined stake stands at 34.9%.
Bank of Ireland named the other investors as Boston-based Fidelity Investments and the California-headquartered pairing of investment firm The Capital Group and property company Kennedy Wilson.
Fairfax Financial's chief executive Prem Wasra told the newspaper that as well as its and WL Ross & Co's near-20% holding, The Capital Group will take a stake of about 6% in the bank. He said Kennedy Wilson will get a much smaller amount after investing €25m.
A spokesperson for Bank of Ireland said it was not for the bank to comment on the size of the individual stakes, as the State had sold the shares in the bank. However, a source close to the process said that they were correct.
The Fairfax CEO added the group of investors saw real value in the only Irish lender to effectively avoid nationalisation.
'We looked at the long-term future of the bank, we think it's appropriately capitalised to deal with the stress test scenarios... We see real value here,' Wasra told the newspaper.
'The bank has an excellent disciplined credit culture. In a property and construction tsunami, no bank is spared,' he added, referring to the property crash.
Wasra, who founded the Toronto-based insurer and investment company in 1985, has been dubbed as 'Canada's Warren Buffett' for past investment wins, including bets against the US housing market that brought in billions when it collapsed in 2007.
