Allied Irish Banks (AIB) has offered to exchange €3.9 billion in junior debt at 30% of the bonds’ face value, Financial Times reports. The issue by the bank, which is over 90% owned by the Irish government, covers 11 different bonds.

AIB is seeking to cover around a €6.1 billion capital shortfall with the debt exchange. It needs to raise an additional €6.1 billion by the end of next month as part of a €85 billion bail-out of Ireland with the International Monetary Fund and the European Union.

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