Business Irish

Friday 28 April 2017

AIB shareholders to vote on €1.7bn return to the State today

Bernard Byrne, chief executive of AIB. Photo: Mark Condren
Bernard Byrne, chief executive of AIB. Photo: Mark Condren
Gavin McLoughlin

Gavin McLoughlin

AIB shareholders will this morning vote on the bank's capital reorganisation plan that would see €1.7bn returned to the State.

The reorganisation is designed to lead to the return of the 99.8pc State-owned bank to private ownership, and the return of the money used to bail the bank out. The plan is certain to pass this morning because of the size of the Government's holding.

The €1.7bn will come from the redemption of some of the Government's preference shares in the bank - with some of the proceeds to be used to pay off a €250m promissory note issued by the State to EBS Building Society - now a part of AIB.

Taxpayers bailed out AIB to the tune of €21bn. A further €1.6bn  is due to be repaid in June when so-called "contingent capital" matures. More of the bailout money is expected come back when the Government sells off a stake in AIB, likely later next year.

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