BANK of Ireland and Irish Permanent are raising a total of £275 million in debt finance on the London market.

Bank of Ireland has decided to increase the size of its latest debt issue under its Euronote programme from £150 million sterling to £200 million sterling, following a good response from investors.

The funds which rank as lower Tier 2 capital are subordinated notes to the year 2009. A spokesman declined to disclose the pricing of the issue, stating that he could not reveal the details until the notes were listed on the market. This would happen within the next 10 days, he said.

The fundraising was part of the normal process of rolling over funds to push out maturity dates in order to keep up capital levels and in light of the £600 million sterling Bristol and West acquisition, he said.

Irish Permanent is completing a £50 million sterling fundraising. This will bring to £75 million the amount raised under the £1 billion Euronote facility announced on January 10th.

The cost is understood to be the three month London Interbank rate plus 0.06 per cent. The company will raise small amounts continuously over the coming months to fund new mortgage lending.