Bank of Ireland prices rights at €0.55

Bank of Ireland has set the price of the rights issue to repair its balance sheet at €0.55 with the Irish taxpayer likely to end up with a 36% stake once it completes.Terms of the issue are 3 new shares for every 2, with the price a 64% discount to the last closing price. It will raise €1.72bn. The NPRFC has agreed to take up its €0.627bn entitlement leaving just short of €1.1bn gross to come from other shareholders.The Irish State will hold a maximum of 36% of the ordinary shares in the bank following the rights issue and will also hold approximately €1.84bn of 2009 preference stock.Coupled with placings with the Irish government and insitutional shareholders, Bank Of Ireland's Equity Tier One capital will rise by a total of €2.93bn with the rights issue proceeds.