Irish lender Permanent TSB to return stock market: media

Irish lender Permanent TSB would launch a public share offering on Tuesday to raise 400 million euros (or 423 million U.S. dollars), local media reported on Monday.

Permanent TSB, Ireland's smallest state-owned bank, did not pass the stress test of the European Central Bank (ECB) last year. The public share sale is part of its plan to raise 525 million euros to address a capital shortfall identified by the ECB.

The bank last week secured approval from the Irish government, which owns 99.2 percent of the bank, to raise up to 400 million euros in equity, a source close to the matter said, according to Reuters.

However, it is not clear whether it would use a public or private sale. A spokesman for the bank declined to comment.

The bank plans to raise a further 125 million euros by selling so-called additional tier 1 bonds. The kind of bonds would convert into equity or be written down if the bank's capital falls below a certain level.

Reports said the public offering could help the bank return to the main Dublin stock exchange four years after it was delisted, and it would also give the bank a wider investor base. (1 euro = 1. 05 U.S. dollars)