Monday 24 October 2016

AIB's IPO kicked back to first half of 2017 - Noonan

Published 12/05/2016 | 02:30

AIB Headquarters in Dublin Photo: Bloomberg
AIB Headquarters in Dublin Photo: Bloomberg

The part privatisation of AIB is likely to be pushed out into next year, Finance Minister Michael Noonan has said.

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The original plan of floating a portion of the state-owned bank this year had been in doubt following global market turmoil earlier in the year.

"The market late last year and early this year for bank shares in particular hasn't been good," he said. "It's less likely that we'll go in the last quarter of this year now, and more likely that we'll go in the first half of next year, if the market corrects."

But the minister stressed the Government remains committed to the sale, but of no more than 25pc of the bank in the first tranche. "It is government policy to put the banks back to private ownership, but over a period of time, when we can get maximum value for the taxpayer," the minister said.

"We don't need to cash out. There was a time we did, to reduce debt levels, but we've all these things under control now, so there's no constraint on us. So we'll wait until we can get best vaule for the taxpayer and recover the maximum amount that we can.

Meanwhile, ratings agency Fitch has said the formation of a Government has not brought an end to political uncertainty. Although uncertainty has been reduced, it isn't clear how much the minority government will be able to do.

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