Bank of Ireland has launched a tender offer for up to 9.3 million preference shares for a price of up to a maximum of euro 22.50 or £17.75 sterling.
The tender offer stock equates to up to 60 per cent of the aggregate outstanding units of preference stock, the company said.
Bank of Ireland said it has reviewed the structure of its preference stock within the overall capital structure and now considers it would be appropriate to reduce its level by up to 60 per cent of the outstanding amount.
The bank also said early indications of trading in Ireland suggest it remains positioned to achieve current expectations for earnings this year.
It said it also believes the somewhat slower, but more sustainable, growth in the Irish economy will underpin domestic earnings growth and that the performance to date in the group's businesses outside Ireland is satisfactory.
Bank of Ireland said it expects to announce on September 24th the purchase price and the total number of units of preference stock in respect of which tenders are accepted.