Bank of Ireland tipped to launch £1bn rights issue

City A.M. Reporter
BANK of Ireland is planning to launch a rights issue within six to eight weeks to raise up to £1bn, reports suggested yesterday.

Bank of Ireland, rival Allied Irish Banks and some smaller lenders are set to transfer shaky property loans to the National Asset Management Agency (NAMA), widely referred to as a “bad bank.”

The related writedowns will force the banks to raise additional capital and they have said they would look at a variety of sources including the equity market and, as a last resort, further state help.

UBS and Credit Suisse are said to have been appointed to advise on the rights issue.

Bank of Ireland Chairman Pat Molloy said last month a rights issue was one of a range of options he would consider.