Bank of Ireland will attempt to raise €1.91 billion from shareholders in a rights issue next week as part of its drive to boost its capital base by €5.2 billion to meet regulatory requirements.
The new shares will be offered to existing shareholders at a price of 10 cent each - a discount of 13.8 per cent on the closing price of the bank's shares in Dublin today.
Shareholders will be eligible to buy 18 new shares for every five existing shares they own.
The issue will be fully underwritten by the National Pension Reserve Fund Commission on behalf of the State. It will buy up any of the new shares the existing shareholders fail to take up.
If there is a full take-up of the rights issue from existing shareholders, the State's shareholding in the bank will be 29.2 per cent.
If none of the new shares are taken up, and the fund has to buy up all the new stock, the State will own 69.7 per cent of Bank of Ireland.