Aib

rights issue @ 0.55 EUR

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=3460937

Bank of Ireland prices rights at €0.55

Mon 17 May 2010
BKIR - Bank of Ireland
Bank of Ireland € 1.48 -4.84%

LONDON (SHARECAST) - Bank of Ireland has set the price of the rights issue to repair its balance sheet at €0.55 with the Irish taxpayer likely to end up with a 36% stake once it completes.

Terms of the issue are 3 new shares for every 2, with the price a 64% discount to the last closing price. It will raise €1.72bn. The NPRFC has agreed to take up its €0.627bn entitlement leaving just short of €1.1bn gross to come from other shareholders.

The Irish State will hold a maximum of 36% of the ordinary shares in the bank following the rights issue and will also hold approximately €1.84bn of 2009 preference stock.

Coupled with placings with the Irish government and insitutional shareholders, Bank Of Ireland's Equity Tier One capital will rise by a total of €2.93bn with the rights issue proceeds.
 
http://www.iii.co.uk/news/?type=afxnews&articleid=7896181&action=article

DUBLIN, May 17 (Reuters) - Shares in Bank of Ireland fell more than 5 percent on Monday, underperforming industry peers, after it set the discount for its rights issue at the higher end of the indicated range.

Ireland's biggest lender priced its fully underwritten 1.73 billion euro rights issue after the close of trading last week at 0.55 euro per share, or 64 percent below its Friday closing price.

The rights issue price represents a discount of 41.7 percent to the theoretical ex-rights price (TERP), Bank of Ireland said, compared with a previously indicated discount range of 38 to 42 percent.
Shares in the bank fell 3.5 percent to 1.481 euros by 0817 GMT, while the wider Irish market fell 0.7 percent and the European banking sector shed 0.2 percent.

The Irish government wants to showcase Bank of Ireland as the first Irish lender to fill its capital shortfall from mostly private sources and which can recover from Ireland's property market crash despite turmoil in the euro zone.

"The wider market concerns around sovereign risk in Europe is hardly a helpful backdrop over the next few weeks," Goodbody analyst Eamonn Hughes said in a note.

After Bank of Ireland has tested the market, Allied Irish Banks and banking and insurance group Irish Life & Permanent plan to follow suit by raising capital in the second half of the year.

Subject to shareholder approval on Wednesday, Bank of Ireland will issue three shares for every two held and expects gross proceeds of the rights issue at 1.098 billion euros before taking into account the shares taken up by the government, its minority owner.

The Irish government, which has converted part of its preference shares in the bank into ordinary equity, is participating in the rights issue and will hold a stake of up to 36 percent after the operation.
British insurer Prudential on Monday priced its record $21 billion rights issue at a 39 percent discount to the theoretical ex-rights price (TERP)

The overall capital gain in Bank of Ireland's fund-raising plan -- after expenses and buying back state warrants -- is seen at 2.9 billion euros, including the proceeds from an institutional placing and a debt-for-equity swap.

also
http://www.reuters.com/article/idUSN1420168420100514
 
http://www.reuters.com/article/idUSN1420168420100514

UPDATE 1-Bank of Ireland prices rights issue at 64 pct discount

To raise 1.73 bln euros

3-for-2 rights issue at 0.55 euro per share

* State, minority owner, also taking up its rights (Adds more details from statement, background)

DUBLIN, May 14 (Reuters) - Bank of Ireland (BKIR.I) set the price for its 1.73 billion euro rights issue at 0.55 euro per share or 64 percent below its Friday closing price, launching a central part of its four-step plan to raise 3 billion euros.

Ireland's biggest lender will issue three shares for every two held and expects gross proceeds of the rights issue at 1.098 billion euros ($1.40 billion) before taking into account the shares taken up by the government, its minority owner.

The Irish government, which has converted part of its preference shares in the bank into ordinary equity, is participating in the rights issue and will hold a stake of up to 36 percent after the operation.

The rights issue price represents a discount of 41.7 percent to the theoretical ex-rights price (TERP), Bank of Ireland said.

Earlier this year, Italy's biggest bank UniCredit (CRDI.MI) priced its 4 billion euros rights issue at a 29 percent discount to the theoretical ex-rights market price in a move to shore up lagging capital ratios. [ID:nLDE6060NW]

The Irish government wants to showcase Bank of Ireland as the first Irish lender to fill its capital shortfall from mostly private sources and which can recover from Ireland's property market crash even among turmoil in the wider euro zone.

Appetite for Bank of Ireland's offerings will test demand for Irish assets in general after worries about contagion from Greece's debt problems.

Ireland's biggest lender by market value raised 233 million euros in a debt for equity swap, it said on Monday, and part of those proceeds reduced the amount sought in the rights issue which was originally planned for up to 1.885 billion. [ID:nLDE6480DH]

The overall capital gain in the fully underwritten plan -- after expenses and buying back state warrants -- is seen at 2.93 billion euros.

It raised 500 million euros at the launch of the capital raising in a strongly subscribed institutional placing.

Bank of Ireland said shareholders had until June 8 to accept or decline the rights issue proposals and the results would be announced on June 9. (Reporting by Andras Gergely and Marie-Louise Gumuchian, editing by Bernard Orr)
 
ALBK random info:

3.5 billion EUR preference share holding by Irish govt
dividend payment @ 8%
8% * 3.5 billion = 280 million EUR

*****************

share count as per Bloomberg:
http://www.bloomberg.com/apps/quote?ticker=ALBK:ID

is currently
1,080.845 million shares
closing price on Wed 19 May = 1.145 EUR

market cap is approx. 1.24 billion EUR

*************

AIB required to raise 7.39 billion EUR.

The Financial Regulator’s capital requirement is to be met by 31st December 2010.

http://www.elitetrader.com/vb/showthread.php?s=&postid=2787174#post2787174

According to Morningstar analysis (page 6 of this thread),

Poland = 2.6 billion EUR
MTB = 1.6 billion EUR
total asset sales = 4.2 billion EUR

which means that approx 3.19 billion EUR is needed from a capital raising.

AIB plans to do a rights issue in September (page 7 of this thread).
 
BKIR capital raising summary here on page 6:

http://www.elitetrader.com/vb/showthread.php?s=&postid=2819370#post2819370

3.42 billion EUR capital raising
1.89 billion as rights issue
500 million with instos
1.04 billion with government

*************

Rights issue was only 1.72 billion EUR

http://www.irishtimes.com/newspaper/finance/2010/0520/1224270711697.html

Shareholders are being offered three shares for every two they own at a discount of 55 cent a share or 42 per cent on the expected value of shares afterwards. The results of the rights issue will be announced on June 9th, a day after subscriptions end.

Quote from
http://www.bloomberg.com/apps/quote?ticker=BKIR:ID

last price = 0.833
change is -0.057
which implies prev close of 0.89

actual prev close on 19 May was 1.37

implied value of rights = 0.48

http://www.bankofireland.com/investor/capital_raising/documents_and_announcements/index.html
 
BKIR:

http://online.wsj.com/article/BT-CO-20100520-703339.html?mod=WSJ_latestheadlines

LONDON (Dow Jones)--Bank of Ireland PLC (IRE) said Thursday the minimum conversion price under the debt for equity offer has been determined at EUR0.851103, a 25% discount to the closing price on April 23, adjusted by the rights issue factor.

MAIN FACTS:

-Elections for EUR61 million of allotment instruments have been received to date.

-Current amount of allotment instruments that can incrementally be issued under those exchange offers which remain open, equates to a maximum of a further EUR68 million.

-Warrants held by the NPRFC have been cancelled in return for payment of EUR491 million in cash by the Bank to the NPRFC.

-NPRFC no longer holds any Warrants or the subscription rights for Ordinary stock pursuant to the Warrants.
 
The Governor and Company of the Bank of Ireland (IRE) announced a distribution of Rights to holders of The Governor and Company of the Bank of Ireland Ordinary Shares.

The Rights were not registered in the United States and will not be distributed to holders of IRE American Depositary Shares (ADS’s). In lieu of the Rights, The Bank of New York Mellon, as the agent for IRE, sold the rights in the home market and will distribute the proceeds of the sale to IRE ADS Holders.

The distribution is $1.017725 per ADS (gross rate of $1.037725 - $0.0200 Depositary Fee). The ADS record date is May 17, 2010. The payable date is June 11, 2010. The New York Stock Exchange (NYSE) has set June 7, 2010 as the ex-distribution date.

Quote from m22au:

BKIR capital raising summary here on page 6:

http://www.elitetrader.com/vb/showthread.php?s=&postid=2819370#post2819370

3.42 billion EUR capital raising
1.89 billion as rights issue
500 million with instos
1.04 billion with government

*************

Rights issue was only 1.72 billion EUR

http://www.irishtimes.com/newspaper/finance/2010/0520/1224270711697.html

Shareholders are being offered three shares for every two they own at a discount of 55 cent a share or 42 per cent on the expected value of shares afterwards. The results of the rights issue will be announced on June 9th, a day after subscriptions end.

Quote from
http://www.bloomberg.com/apps/quote?ticker=BKIR:ID

last price = 0.833
change is -0.057
which implies prev close of 0.89

actual prev close on 19 May was 1.37

implied value of rights = 0.48

http://www.bankofireland.com/investor/capital_raising/documents_and_announcements/index.html
More...
 
"ECB Buys Irish Government Bonds to Calm Market"

http://online.wsj.com/article/SB10001424052748704407804575425171479759244.html?mod=googlenews_wsj

"The benchmark two-year Irish government bond, a 3.9% security maturing in May 2012, saw its bid price drop to a low of 100.795 on Thursday, down from 101.585 at Tuesday's close, equating to a yield of 3.35%, up from 2.837% on Tuesday, according to TradeWeb data.

"The bond's yield, which represents the cost of borrowing for the Irish government, rose further in early trading Thursday to a high of 3.426% although it has since dropped to 3.216% in mid-morning dealings, the data show.

"The market ruction was triggered partly by the Bank of Ireland's announcement Wednesday that its underlying pretax loss nearly doubled in the first half of 2010 amid high loan impairment charges. On top of that, the European Commission has cleared the Irish government to inject another €10 billion ($12.89 billion) of capital into Anglo Irish Bank beyond the €14.3 billion already provided.

"These events suggest the government will continue to have to bail out the country's banks, pressuring public finances and denting the outlook for Irish government bonds.

"Investors are particularly concerned about the ability of some Irish banks to raise new financing when their existing government-guaranteed debt issues mature in September. They are also worried about an auction on Tuesday next week of two bond issues due 2014 and 2020. "

More Irish drama in the link above
 
************

ALBK random info:

3.5 billion EUR preference share holding by Irish govt
dividend payment @ 8%
8% * 3.5 billion = 280 million EUR

*****************

share count as per Bloomberg:
http://www.bloomberg.com/apps/quote?ticker=ALBK:ID

is currently
1,080.845 million shares
closing price on Wed 19 May = 1.145 EUR

market cap is approx. 1.24 billion EUR

*************

AIB required to raise 7.39 billion EUR.

The Financial Regulator’s capital requirement is to be met by 31st December 2010.

http://www.elitetrader.com/vb/showthread.php?s=&postid=2787174#post2787174

According to Morningstar analysis (page 6 of this thread),

Poland = 2.6 billion EUR
MTB = 1.6 billion EUR
total asset sales = 4.2 billion EUR

which means that approx 3.19 billion EUR is needed from a capital raising.

AIB plans to do a rights issue in September (page 7 of this thread).
 
Still short AIB

Still waiting for details about the capital raising.

Meanwhile the market's perception of Irish govt debt looks much worse than it did when I started posting on this thread in late March / early April.
 
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