As set out in Bank of Ireland's (the "Bank") preliminary statement of its financial results for the year ended 31 December 2011, released on 17 February 2012, the Bank's outstanding unguaranteed subordinated debt at 31 December 2011 was €370m. This excludes the €1bn contingent capital instrument investment subscribed by the State. As the deputy is aware, I noted on 23 November 2011 that the Bank had to raise €350m of core tier 1 capital by 31 December 2011 to satisfy the requirement of the 2011 Prudential Capital Assessment Review ("PCAR 2011"). In that context I considered using the powers available under the Credit Institutions (Stabilisation) Act 2010 as amended ("CISA") to apply for a Subordinated Liabilities Order ("SLO") to generate, from subordinated liabilities, the residual capital required by the Bank by 31 December 2011.
On 2nd December 2011, the Bank announced that it had raised approximately €350m of core tier 1 capital, through its tender offer and purchase of capital securities. As a result of the Bank's announcement and the fact that the totality of the outstanding PCAR 2011 capital required by 31 December 2011 had been raised, the grounds for use of the powers under CISA to raise that capital through burden-sharing no longer arose.
It is not for the Minister to comment on the investment decisions made by the holders of subordinated debt in the Bank. The powers granted pursuant to CISA continue to be in effect and will be used in the future if necessary. With regard to achieving burden sharing with subordinated bondholders in all of the banks including the Bank, I draw the deputy's attention to the fact that total capital generated from burden sharing with bond holders since 2008 is in excess of €15bn.