The transfer of €3.5 billion in government funds to Bank of Ireland under the recapitalisation was completed today.
In a brief statement Bank of Ireland said the drawdown took place after conditions of its agreement with the National Pensions Reserve Fund Commission and the Minister for Finance were met.
Under the terms of the agreement the Government has provided €3.5 billion in Core Tier 1 in return for preference shares with a fixed dividend of 8 per cent payable in cash or ordinary shares.
These preference shares can be repurchased at par up to the fifth anniversary of the issue and at 125 per cent of face value thereafter.
Under the terms of the deal the Minister for finance can appoint 25 per cent of the directors and gets 25 per cent of total ordinary voting rights in respect of change of control and board appointments.
Two Government non-executive directors have already been appointed to the 17-person Bank of Ireland board as part of the Government guarantee scheme. They are former senior civil servant Tom Considine and former agriculture minister Joe Walsh as non-executive.
The Government is due to appoint two more directors to the board under the terms of the recapitalisation.
The recapitalisation was approved by the bank's shareholders at an agm in Dublin last week. A similar recapitalisation plan has been proposed for AIB.