Bank of Ireland to raise 3.4 billion euros in fresh funds

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Struggling Irish lender Bank of Ireland said on Monday that it planned to raise 3.4 billion euros (4.6 billion dollars) in fresh capital with the help of the Irish government.

The government's 34 percent stake in the bailed out bank will rise to 36 percent after the exercise, which will also see a private placement worth 500 million euros to institutional investors.

The state will contribute 1.04 billion euros and existing shareholders another 1.89 billion euros, the Bank of Ireland said.

The plan to raise extra funds was announced last month, aiming to strengthen the bank after its near-collapse during the global financial crisis.

© 2010 AFP

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