Tuesday 6 December 2016

AIB shares trading on junior exchange

Paul O'Donoghue

Published 22/12/2015 | 02:30

AIB Headquarters in Dublin
AIB Headquarters in Dublin

Over 2.7 billion ordinary AIB shares commenced trading on the junior Enterprise Securities Market (ESM) in Dublin yesterday, the first shares the bank has issued since its bailout during the financial crisis.

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A total of 2.714 billion new ordinary shares were issued as part of the bank's capital restructuring programme.

Under the reorganisation, AIB will pay €1.7bn to the State from the partial redemption of preference shares issued to the Government in 2009. As well as this, the maturity of the Contingent Capital Notes will result in a further repayment of €1.6bn of capital to the State next July.

The remainder of the preference shares will be converted into ordinary shares that will result in a net increase in Tier 1 Capital of €1.8bn.

Last week shareholders backed a plan which will see AIB repay €1.7bn to the State in the coming weeks. The State owns 99.8pc of the bank.

Finance minister Michael Noonan has said the Government will start the process of selling off its stake in AIB as soon as the general election is over if it is returned to office.

He said he would "immediately press the button" to start a sale of 25pc of the bank if he is still in the job after the election.

Mr Noonan said the lender would have its principle listing on the London Stock Exchange. Up to now, AIB's main listing has been in Dublin.

Irish Independent

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