Permanent TSB is to launch a public share offering tomorrow to raise €400m, marking its return to the main Dublin stock exchange four years after it was delisted, a source with knowledge of the deal said. 

The bank last week secured approval from the Government, which owns 99% of the bank, to raise up to €400m in equity.

But it did not specify whether the shares would be sold via a public or private offering. 

A spokesman for the bank declined to comment. 

The country's third-largest domestically-owned bank has said it plans to raise a further €125m by selling bonds to fill a capital shortfall identified in European stress tests last year.

The additional tier one bonds would convert into equity or be written down if the bank's capital levels fall below a certain level.