Bank of Ireland

Bank of Ireland is finalising plans to launch a €1bn-plus rights issue within six to eight weeks – the first time an Irish bank has tried to raise funding in global capital markets since the onset of the credit crunch, The Sunday Times says.

The transfer of the bank’s first batch of property loans to Nama and European Commission approval of its business plan will determine the timing of the rights issue.

Davy stockbrokers estimates the bank will need €2.2bn in fresh capital following the transfer. It is expected to raise around €1bn separately from the rights issue by reorganising its debt funding.

Separately, the same newspaper reports the boss of the bank’s joint venture with the British Post Office enjoyed a salary of almost €500,000 in the year to March 2009 – an increase of 9.6% over the previous year and almost on a par with the bank’s head honcho, Richie Boucher. The average salaries of the 19 BoI staff seconded to the venture averaged €173,000.