BoI shares dip on rights issue

 

Shares in Bank of Ireland dipped in trading today in the wake of its announcement to the market of details for a rights issue to help the bank meet new capital ratios set down by the Financial Regulator.

In a regulatory filing, the bank said it would issuegive shareholders the chance to buy stock for just 55 cent per unit as part of a €1.1 billion public rights issue.

Shares fell as as much as 4.9 per cent on the Dublin market, trading at €1.45 by 4.15pm.

The public rights issue will result in shareholders, other than the State, being given the opportunity to buy three new shares for every two they hold.

The Government, through the National Pension Reserve Fund, will separately contribute about €627 million to the rights issue by converting existing preference shares at €1 apiece. This will bring the total proceeds from the rights issue up to €1.723 billion.

Additional reporting: Bloomberg