Bank of Ireland starts capital raising talks

Bank of Ireland has started discussions with a number of potential institutional investors with a view to assessing interest in a capital raise. "Any such transaction may be effected through a combination of a rights issue, a firm placing to institutional investors, a conversion of part of the State's 2009 Preference Stock into ordinary equity on market terms and selective liability management," it said. Based on the current envisaged structure, the Bank expects that the Irish State would continue to be a minority shareholder in the bank. Bank of Ireland needs €2.7bn to meet new capital requirements, but will seek to raise up to €3.3bn, reports today suggested.