Allied Irish Banks (AIB) has set the annual coupon, or interest rate, for a plan to buy back as much as €2.8 billion of bonds from investors at a discount in return for more secure debt at 12.5 per cent.
The scheme will allow AIB to improve the quality of capital within its reserves.
AIB is offering to buy back the bonds at between 50 and 67 per cent of their face value, at a premium above the current indicated price of 35 to 55 per cent of their face value in the debt markets.
