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Wed 05 May 2009Bond move by bank could net €700m
ANNUAL REPORT:BANK OF Ireland plans to buy back debt from bond investors in a move that could generate €700 million in capital to absorb against rising loan losses after the bank posted a full-year pretax loss.
The bank’s share price rose 23.7 per cent to €1.33, valuing the bank at €1.3 billion, after the debt buyback plan was unveiled. AIB rose 7 per cent amid expectation that it will follow with a similar plan. Bank of Ireland said that it will offer a maximum tender value of €1.4 billion for bonds with nominal values of about €3 billion.
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