BoI seeks €800m stock premium cut
BANK of Ireland (BoI) wants a court to confirm an €800m reduction in its stock premium fund to pay a €214m dividend to the State's National Pension Reserve Fund as part of the bank recapitalisation scheme.
Paul Sreenan, for BOI, yesterday applied to Mr Justice Peter Kelly to transfer to the Commercial Court the bank's petition for the fund reduction.
The court was told the reduction had no adverse implications for the bank's solvency, would not prejudice the rights of its creditors or members and, after reduction, the balance in the stock premium account would be some €4.299bn.
The judge made directions for the advertising of the petition and fixed the matter for hearing on November 26.
In an affidavit, BoI CEO Richie Boucher said that, following recapitalisation of BoI by the Government in March 2009 and further capital-raising measures undertaken by BoI in March 2010, the National Pensions Reserve Fund Commission currently held some 1.83 billion units of preferred stock in BoI, carrying a dividend entitlement of 10.25pc per annum.
The current capital stock of BoI was €1.21bn and its stock premium account was €5.099bn, Mr Boucher said.