2 Dec 2011 10:12
SUBORDINATED LIABILITIES ORDER AND INVITATION FOR SUBMISSIONS IN RELATION TO BANK OF IRELAND
On 23 November 2011, the Minister for Finance (the "Minister") noted that Bank of Ireland (the "Bank") had to raise a further €350mn of core tier 1 capital by 31 December 2011 to satisfy the requirements of the 2011 Prudential Capital Assessment Review ("PCAR 2011"). The Minister announced that he was considering the powers available under the Credit Institutions (Stabilisation) Act 2010 as amended ("CISA") to apply for a Subordinated Liabilities Order ("SLO") to generate, from subordinated liabilities, the residual capital required by the Bank by 31 December 2011 and invited submissions from interested parties.
As a result of the Bank's announcement this morning that it has now raised approximately €350mn of core tier 1 capital, through its tender offer and purchase of capital securities, the Minister is no longer considering the use of the powers available under CISA for these purposes at this time.
Notes
On 31 March 2011, the Central Bank of Ireland announced that the Bank of Ireland (the "Bank") was required, amongst other things, to generate core tier 1 capital of €4.2 billion as a result of the 2011 Prudential Capital Assessment Review ("PCAR 2011"). Since this time, the Bank has generated €3.85 billion core tier 1 capital through a variety of measures, including capital provided by the State, private capital and liability management exercises.
At the date of the 23 November 2011 announcement, the residual amount which had to be raised by the Bank by 31 December 2011 was €0.35 billion of core tier 1 capital, required on foot of PCAR 2011.