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Bank of Ireland confirms €3.4bn rights issue

BANK of Ireland has unveiled plans to raise €3.4bn (£2.9bn) in order to help it recover from financial crisis

The lender said it would launch a rights issue to try to shore up its position.

The bank, the Republic of Ireland’s largest, said it hoped to raise the rest of the money by placing shares with institutional investors and a debt for equity swap.

Financial regulators ordered the Bank of Ireland to raise €2.7bn by March.

Irish lenders were hit hard by the collapse in the property crash which saw the economy crippled.

The bank is 16 per cent state-owned after the government pumped cash into the stricken lender.