Wednesday 28 September 2016

Ameriprise builds up 3pc stake in Permanent TSB after IPO

Published 24/05/2015 | 02:30

Ameriprise, the world's biggest financial planning company, has built up a 3pc stake in recently floated Permanent TSB. Last week, the €20bn valued US investor bought shares in the lender led by Jeremy Masding.

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Permanent TSB shares slumped to well below the €4.50 issue price meaning that all those who bought shares in the IPO are now nursing large paper losses. Shares rose to €5.14 soon after the new listing but have fallen steadily since then. Last Friday Permanent TSB shares had fallen to just €4.15, about 7pc below the market debut. The state's remaining 75pc stake is now worth around €1.4bn. Permanent TSB boss Jeremy Masding has suggested that the mortgage lender could return to full private ownership and repay its state bail out of €2.7bn by 2018.

Ameriprise is the first major new investor to be identified since Permanent TSB raised €400m when the state sold off a 25pc stake in an IPO late last month. Other smaller investors include US and global institutions such as John Hancock Financial, MTB Funds, Wells Fargo funds, Principal Financial Group and Crystal Fund Management. Permanent TSB's shareholder base will provide an insight into investor appetite for Irish bank assets, such as the upcoming AIB flotation.

Last week Permanent TSB raised €300m in debt on markets. This is the first time in eight years that Permanent TSB has raised unsecured debt on the market. Permanent TSB's group treasurer Paul Byrne said the move was "another very positive step in the group's re-engagement with the markets, having been away from the unsecured market for over eight years.

"It further builds on the momentum of last week's positive actions by the ratings agencies, the successful execution of the capital raise and the strides we have made in deleveraging our non-core assets," he added.

Sunday Indo Business

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