Anglo Irish Bank plans to raise a minimum of €85 million (£66.9 million) of capital with a preference share placing.

The proceeds will "allow us to develop the bank over the coming years" said a director, Mr Tiarnan O Mahony. Mr O Mahony said the bank was tapping into strong demand for euro paper and preference shares, because so little had been issued since January.

The shares are non-cumulative, undated and redeemable at the option of the bank. The shares will be quoted. There will be a fixed yield of 7.75 per cent with dividends payable quarterly.

The impact on earnings per share is negligible for 1999 and as capital is utilised over time, earnings for ordinary shares will be enhanced, he said.