Thursday 21 September 2017

State-owned AIB plans to repay as much as €2bn of bailout loans ahead of election

It will be the first major repayment by AIB of part of its €20bn bailout.
It will be the first major repayment by AIB of part of its €20bn bailout.
Donal O'Donovan

Donal O'Donovan

State owned AIB plans to repay as much as €2bn of its State rescue this year, despite a delayed stock market flotation.

The bank is reported to be planning to raise between €1.5bn and €2bn in cash by borrowing on the markets though an issue of junior bonds known as Tier 2 and Additional Tier 1 notes, according to the Bloomberg newswire quoting unnamed sources.

The money will be used to part repay €3.5bn of preference shares, a type of loan.

It will be the first major repayment by AIB of part of its €20bn bailout and it comes ahead of next year's eleciton.

A deal could happen as soon as next month, and is subject to ECB approval, as well as agreement from the Minister for Finance.

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