ICC Bank is to raise £14.8 million through a rights issue to raise extra equity for future growth. The State-owned bank announced yesterday that it is to issue 14.9 million new ordinary shares, the bulk of which will be taken up by its majority shareholder, the Minister for Finance, Mr McCreevy. The rights issue is sponsored by Bloxham Stockbrokers.

ICC said the proceeds will be used to sustain the level of growth in loans and investments for customers and to expand its range of financial services.

The Government has approved the sale of the bank by public tender. Bank of Ireland and the Irish Permanent have both expressed interest in purchasing it while a number of foreign institutions are also expected to consider its acquisition.