Bank of Ireland to raise pounds 95m with rights issue
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BANK OF IRELAND, one of the Republic of Ireland's two leading clearing banks, yesterday announced a six-for-one rights issue to raise Ir pounds 100m (pounds 95m) at 150p a share in order to retire dollars 125m (pounds 84m) of US preference stock that it said was becoming too expensive, writes Lisa Vaughan.
At the annual general meeting in Dublin, the bank's Governor, Howard Kilroy, said the time was right for an issue that would also restore the bank's slipping equity to assets ratio.
The bank has suffered dollars 100m losses in its US subsidiary for several years and was hit by the Greencore share placement fiasco this summer. But analysts said the issue was not a distress signal.
Mr Kilroy said he expected good group profits this year and US prospects were improving. Second-quarter profits of Bank of Ireland First Holdings Inc were likely to be similar to its first-quarter loss of dollars 2.7m.
The group reported pre-tax profits of Ir pounds 124m in the year to 31 March 1993.
The bank's capital position will improve after the issue, with tier one capital rising to 7.3 per cent from 6.6 and total capital to 13.3 per cent from 12.6. The offer is open for three weeks.
The court of directors recommended that next year's dividend be maintained at 9.83p, a 6.5 per cent rise over 1992/93 after the issue is incorporated.
The shares, 87 per cent of which are held in Ireland, closed 9p lower at 241p in London yesterday. Analysts said they expected the issue to be well received because the shares were priced at a deep discount.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments