Business Irish

Sunday 4 December 2016

State sells 25pc of stake in Permanent TSB, raises €400m

Tom Molloy and Colm Kelpie

Published 27/04/2015 | 16:57

Share offer priced at €4.50 per share
Share offer priced at €4.50 per share

The state has sold 25pc of its stake in Permanent TSB, raising €400m.

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Some €400m was raised in a share offer, priced at €4.50 per share. Another €125m was raised through high risk bonds that automatically convert into shares if the bank gets into trouble.

The bank had set a range of €3.90 to €4.50 per ordinary share for the issue, a key test of investor appetite for the sector and for Allied Irish Banks ahead of a possible stake sale in the next 12 months.

Finance Minister Michael Noonan said the €525m raise was a “significant milestone” in the bank’s recovery.

“Completion of the capital raise will enable PTSB to further progress its Restructuring Plan and to maximise the return for the State on its equity investment,” the minister said.

Mr Noonan said that as part of the transaction, the state will recoup €509 million in capital receipts from the sale of shares and the repurchase of the so-called Contingent Capital Notes.

This brings the total capital receipts from PTSE to €1.8bn since the state’s investment.

“As a result of much hard work over 45pc of the capital invested by the State will have been repaid before taking account of investment income, guarantee fees and our residual shareholding,” Mr Noonan said.

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