Allied Irish Banks sells off stakes in capital raising effort

Allied Irish Banks (AIB) is the first of Ireland’s five main banks to dump banking and asset management stakes in a capital raising effort, after it emerged the banks need to find an extra €24bn of funding.

AIB today sold off its 70.36% stake in Polish Bank Zachodni WBK S.A and its 50% stake in BZ WBK AIB Asset Management S.A. to Spanish Banco Santander S.A.

The move follows an announcement last night that five of Ireland’s main banks, AIB, Bank of Ireland, EBS, Anglo Irish and Irish Nationwide Building Society collectively needed a further €24bn of funding.

That announcement came after Ireland had to approach the European Central Bank for €35bn towards the end of last year, securing the bailout on 29 November 2010.

AlB needs to raise an additional €13.3bn. From the latest sale, proceeds are approximately €3.1bn, amounting to the equivalent of €2.5bn of core tier one capital, it said.

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