BANK OF Ireland and EBS yesterday announced details of further debt-exchange exercises aimed at bolstering capital.

Bank of Ireland plans to exchange about €300 million of subordinated debt at an average discount of 56 cent in the euro. The proposal relates to two tranches of the bank’s remaining lower tier two debt, denominated in Canadian dollars. Holders of the debt will receive Government-guaranteed 6.75 per cent notes due in September 2012 in return.

Under the terms of the offer, which closes on February 9th, holders of 221.32 million Canadian dollars of bonds due in September 2015 will be invited to change the notes at a price of 52 cent, while 145.172 million Canadian dollars of debt dated September 2018 will be exchanged at a price of 59 cent.

Bank of Ireland is required to raise €2.2 billion by the end of the month. EBS also announced details of a debt-swap which will see the lender try to buy back some €210 million of dated subordinated debts at discount of 70 per cent and two undated junior notes worth €83.8 million at 17.5 cent in the euro.

The closing date for the EBS debt exchange is February 23rd.

Sellers of credit default swaps on Anglo Irish Bank debt may have to pay as much as 28.75 cent on the euro to settle contracts linked to Anglo’s debt. At an auction yesterday, credit-default swaps traders set a final recovery value of 71.25 per cent for senior and subordinated debt maturing within two and a half years. – (Additional Reporting, Bloomberg)