Most bondholders reject Bank of Ireland's B&W offer
DUBLIN, Sept 23 |
DUBLIN, Sept 23 (Reuters) - Bank of Ireland's heavily discounted cash offer for bonds with a face value of 75 million pounds ($115 million) was largely rejected by the noteholders, meaning the government may impose losses on those who refused the offer.
Investors holding 29 million euros ($39 million) of the bonds, originally sold by Bristol & West Building Society (B&W), accepted the offer to buy back the bonds at a 60 percent discount. Bank of Ireland took over Bristol & West in 1997.
Ireland's banks have been imposing losses on junior bondholders to help pay for their recapitalisation under an EU-IMF bailout.
Bank of Ireland raised nearly half of the 4.2 billion euros of additional capital it was required to find by hitting junior bondholders with losses. It said in August it expected to raise another 400 million euros through further "burden sharing".
Under tough banking legislation passed on back of the country's financial crisis, Ireland's minister for finance can impose losses on junior bondholders by applying to the country's courts. ($1 = 0.652 British Pounds) ($1 = 0.743 Euros) (Reporting by Carmel Crimmins; Editing by Jon Loades-Carter)
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