Anglo Irish Bank Corporation has hired JP Morgan Chase & Co and Nomura for a sale of government-guaranteed bonds in dollars due 2010, according to a person with knowledge of the transaction.
AIB yesterday issued raised €1 billion from investors in the first sale of an unsecured, non-guaranteed bond since the introduction of the Government bank guarantee last September.
Meanwhile, Anglo is expected to sell €28 billion of loans at a discount of more than 30 per cent to the State's "bad bank", Nama.
The losses on the €16 billion development loans and €12 billion associated loans are expected to be so large as to warrant further State cash injections to replenish its capital reserves.
The bank was nationalised in January this year, and in June, the European Commission gave its approval for the Government to recapitalise the bank with an injection of €4 billion in taxpayers' funds.
Anglo reported a loss of €4.1 billion, the largest ever recorded in Irish corporate history, for the six months to the end of March 2009.
Additional reporting: Bloomberg