BANK of Ireland is preparing to raise fresh funds in the markets, with some sources suggesting it could be seeking up to €1 billion.
By Siobhán Creaton,
Finance Correspondent
The bank has said the fund-raising initiative is in line with its plans for managing its capital and that it will leave the bank with a more desirable mix of funding.
A Bank of Ireland spokesman said the fund-raising was in no way linked to any plans to make acquisitions. The bank said yesterday that it would introduce a benchmark Tier 1 bond issue and would meet with investors next week. Barclay's Capital will act as lead manager for the bond issue.
The bank's Tier 1 ratio stands at 7.7 per cent, causing some analysts to question this latest fund-raising programme.
The bank has been active in the market, buying back its own shares as a means of utilising its surplus capital. Last month the Bank of Ireland tapped the debt market with a £100 million sterling (€146 million) floating-rate note due in July 2004.
Bank of Ireland has an Aa3 rating from Moody's, an A+ rating from Standard & Poor's and an AA- rating from Fitch. Halifax Bank of Scotland and Lloyds TSB did similar transactions with the non-European retail market recently.
