Anglo Irish Bank has completed a share placing to raise €416 million to support its growth over the coming years.
The bank has placed 33.6 million shares at €12.40 per share, the largest share placing ever undertaken by an Irish-listed company. Anglo Irish Bank chief executive, David Drumm, said the successful placing, which had been oversubscribed four times, was good for the bank and its shareholders.
"We are delighted with the positive response to the placing. It further strengthens the bank's capital base and positions us well to take advantage of future organic growth opportunities in each of our core markets" he said.
The shares, which represent 5 per cent of Anglo's issued share capital, were placed with 120 investment institutions and increase ordinary equity shareholders' funds by 25 per cent, from €1.7 billion to €2.1 billion. Dealing in the placing shares is due to start on January 26th.
Anglo Irish Bank shares were higher in Dublin yesterday closing at €12.80 up 10 cent.
The bank has said that none of the funds will be used for acquisitions.
Mr Drumm said the placing was a vote of confidence in Anglo's management and where they were bringing the bank in the future.
The bank has been investing in its infrastructure and increased its staff by 17 per cent last year, and will continue to expand its workforce, according to Mr Drumm.
"We will be continuing to build on this base and have now raised capital that will support the bank up to 2012."
The share placing was handled by Davy Stockbrokers.
The bank has a long tradition of pre-funding its growth. Mr Drumm said he believed there were significant medium- and long-term opportunities for the bank in each of its core markets.
Anglo posted a better-than-expected performance for 2005 with profits up 36 per cent to €685 million.
At the end of last year, it said it had a loan pipeline amounting to €6 billion for this year, compared with €4 billion a year earlier.
In the year to the end of September, the bank recorded net loan growth of €9.8 billion.
The bank insists that asset quality remains strong, with non-performing loans accounting for 0.5 per cent of the total.
