The Irish government has announced it will invest €5.5bn ($7.6bn) in the country’s three main banks, which will see it take an effective 75% stake in Anglo Irish Bank. The investment is in the form of perpetual preference shares, with the government putting €2bn into each of Bank of Ireland and Allied Irish Banks, both of which have UK retail operations, in return for an 8% coupon. A further €1.5bn will go into Anglo Irish, which last week suffered the resignations of both its chairman and chief executive over a loans scandal, but will charge a higher coupon of 10%.

This entry was posted by Gwen Robinson on Monday, December 22nd, 2008 at 5:42 and is filed under Capital markets. Tagged with Allied Irish Banks, anglo irish bank, bank of ireland. Edit this entry.