Bank of Ireland in talks to raise f…
Wednesday, March 31st, 2010 Uncategorized.
Reuters
Published: 9:40AM BST 31 Mar 2010
Ireland’s biggest bank by market value needs to find €2.7bn (£2.4m) of additional capital after writedowns on €12bn of loans it is selling to the National Asset Management Agency (NAMA), the “bad bank”, at a discount, the bank said in a statement.
It will raise about half of the new capital privately and the government will convert some of its €3.5bn worth of preference shares into ordinary equity, remaining a minority shareholder.
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The bank is selling the first tranche of its loans to NAMA at a discount of 35pc, the smallest of the five participating lenders, and said the discount on the whole €12bn portfolio will be in line with its guidance in January.
In January it expected a haircut of no more than €4.8bn, or 30pc, on a total book it then expected to be €16bn.
On Wednesday it reported a loss of €1.47bn for the 9 months to the end of December, having shifted the end of its fiscal year to match the calendar year.
“Revenues remain under pressure, in particular due to higher funding costs as we continue to extend the maturity profile of our wholesale funding,” the bank said in its full-year results statement.
The bank expects impairments on other loans to fall from this year.