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BANK OF IRELAND has confirmed that it has raised about €2bn in new capital, after the majority of its junior bondholders opted to take up a deal where they swapped their bonds for shares or cash.
72.4 per cent of the bank’s junior bondholders – to whom the bank owes €1.9bn – have taken up the offer so far, the bank said in a statement to the London stock exchange this afternoon.
The bank had announced the offer on May 31, outlining two options: either the bondholders accept a stakeholding in the bank (or cash), or face receiving as little as 10 per cent of the amount they are owed.
95.4 per cent of those bondholders chose to convert their bonds to shares, with the small remaining amount instead a cash payout.
As a result, the bank said, its burden-sharing exercises would raise €1.98bn in total – reducing the amount the public will need to inject to keep the bank afloat.
The bank is required to raise €4.6bn under the terms of the March stress tests. Remaining bondholders have until July 7 to agree to the deal.
Bank of Ireland is the last Irish banking institution not to be under majority state control, with the state owning 36 per cent of the bank.
The bank warned that if no other bondholders were to take a stake in it, the State would have to cover the shortfall – pushing its ownership to 69.2 per cent.
If the State takes a majority stake in BoI, it will effectively have nationalised the entire banking sector.
Separately this evening, AIB said it was close to agreeing how many new shares the State would take in exchange for its €13.3bn investment under the same stress tests.
The bank warned that the 7 per cent of shares currently owned by private investors could be diluted even further.
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Not another one !
Facebook wastes enough of my time.
No one wants another social networking site.
It looks like Facebook already.
What a waste of resources
Awful name.
A social network site aimed at older fold would be a winner. Oh no, wait, we prefer just to be in the same room as the person to whom we’re speaking. How old fashioned.
Sean, you meant older FOLK, didn’t you? Now just drink your Horlicks and go to bed.
So, Sean, what are you doing on Twitter?
Let me pass you the werthers originals there Sean
Thank you, Adrian. Ask nurse to turn off the light.
I giv u the new google plus
Microsofts “ideas” department’s next challenge is to take on the Super Nintendo
I’m not working there so its not defeatist talk but really? This will flop. Facebook does so many things better than anything they’ll come up with. Just leave it alone and try some other market.
google will usually produce (buy) better apps than microsoft, and they’re still not even in the race…
Now wheres the sign in with google here? Doh…
Facebook is a marketers wet dream. When those telephone directory size surveys land on your mat, offering the free carriage clock and fountain pen, do you fill them in? No! They go straight in the bin!
Yet people willingly sign over all their personal data (including the fact they flip their pillow to the cold side) in a heartbeat to social networks.
I stopped using Facebook about 3 years ago. Given their handling of privacy and constant T&C amendments and new feature bungles. I use Diaspora, Twitter and G+, but I limit the data I provide them and think before I post. If Socl can get right what Facebook gets wrong (taking Microsoft’s stake in the company to account) then they could be on to a winner.
In the words of The Miz on WWE Really. Microsoft feels left out they try to after another corp because they got beat before they let the world know about Bing.com. Really come on.
http://www.unthink.com is worth a look
Microsoft really needs to just stick to enterprise software, on the consumer end they have no new ideas, they never had. They just copy everything badly, thats fine, the problem is that they do it about 4 years too late and waste cash. Look at the Zune player, Sliver-light and possibly Windows Mobile to name but a few.
I had a first-generation zune and it was a quality device… A lot better than the iPod in fact. Pity it didn’t sell better than it did, but it had no chance against apple.
Windows Mobile also looks good from any time that I have played with it….
have your say