BKIR.L Regulatory News (BKIR)

SUBORDINATED LIABILITIES ORDER AND INVITATION FOR SUBMISSIONSIN RELATION TO BANK OF IRELAND

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 this announcement, the residual amount which must be raised by the Bank by 31 December 2011 is €0.35 billion of core tier 1 capital, required on foot of PCAR 2011.

Given the residual PCAR 2011 capital requirement and due to the substantial financial support already provided by the Irish State to the Bank, the Minister for Finance of Ireland (the "Minister") is considering the measures available to ensure that the Bank meets its residual PCAR 2011 capital requirement by the 31 December 2011 deadline. As part of this process, the Minister is 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.

The Minister has not yet made any decision on the matter, undertaken the consultation process with the Governor of the Central Bank that is required by CISA, or formed any opinion under section 28 of CISA. However, the Minister is considering the possibility of applying for a SLO which would write down each or any of the subordinated liabilities listed in the attached appendix by up to 100% from the current principal amount, effective from the date of publication of the SLO (the "Effective Date"). Interest would accrue on the current principal amount of the subordinated liabilities up to the Effective Date and thereafter on the proposed new principal amount.

A SLO in these terms would immediately generate up to €0.35 billion of core tier 1 capital for the Bank, thereby ensuring that the Bank would meet its regulatory capital requirements.

The Minister now invites written submissions from interested parties for consideration by him in relation to the possibility of a SLO in these terms being made in respect of the subordinated liabilities of the Bank. Submissions may be made by such parties by e-mail to SLO-Submissions@finance.gov.ie or in writing to:

Bank of Ireland SLO Submissions,

Department of Finance,

Government Buildings,

Upper Merrion Street,

Dublin 2,

Ireland.

Such submissions should include full details of the party's interests in the subordinated liabilities of the Bank, and all information which is considered by that party to be relevant.

Neither the Minister nor the Department of Finance will speak, meet or otherwise engage with interested parties. If, having considered any submissions made, the Minister determines to proceed with a SLO, whether in the terms described above or in other terms, then he will do so without further notice to interested parties and in compliance with the applicable statutory provisions.

The Minister wishes to advise interested parties that all submissions received will be considered and taken into account, together with all other relevant matters, when considering the steps necessary to make sure that the Bank meets its regulatory capital requirements.

All submissions must be received no later than 5.30 p.m. on 30 November 2011. No submission received after this time will be eligible for consideration.

APPENDIX

(A) Dated Subordinated Liabilities

(B) Perpetual Subordinated Liabilities

This announcement has been issued through the Companies Announcement Service of

The Irish Stock Exchange.