* Allied Irish needs to raise 7.4 bln euros by year-end
* Fin Min: Anglo Irish sub-debt holders to be addressed
DUBLIN, Sept 29 Irish Finance Minister Brian
Lenihan is expected to inject a further 2 to 3 billion euros of
state capital into Allied Irish Banks (ALBK.I), the Financial
Times reported without naming any sources.
In the text of an interview with Lenihan published on its
website, the newspaper said the announcement would be made on
Thursday when the government has said it would detail the final
costs for winding down nationalised Anglo Irish Bank.
No one at Allied Irish Banks was immediately available for
Allied Irish needs to raise 7.4 billion euros of capital to
meet new Irish regulatory demands by the end of 2010 and sold
its 70 percent stake in Bank Zachodni BZWB.WA to Banco
Santander (SAN.MC) for 3.1 billion euros this month.
Allied Irish, which hopes to hold a rights issue later this
year, is also close to selling its 22.5 percent in U.S.-based
M&T Bank Corp (MTB.N)(MTB.N) to Santander, a person familiar
with the matter said last week. [ID:nLDE68L1NR]
The government has said it stood ready to increase its 18.6
percent stake in Allied Irish and the Financial Times said
Lenihan would make the announcement of fresh capital in
anticipation that the bank would be targeted by the markets.
Irish borrowing costs have climbed to euro lifetime highs
and triggered jitters across Europe over the as yet
unquantified bill the country will have to foot for stricken
Anglo Irish Bank. [ID:nLDE68S0AX]
The Financial Times quoted Lenihan as saying that issues
around Anglo's subordinated bondholders "will be addressed"
during Thursday's announcement, something Lenihan reiterated in
parliament late on Wednesday.
Lenihan also restated to the paper that Ireland would repay
the banks senior bond holders in full.
(Reporting by Padraic Halpin. Editing by Robert MacMillan)