BoI stock premium fund cut by €800m
THE Commercial Court has confirmed an €800m reduction in Bank of Ireland's (BoI) stock premium fund to pay a €214m dividend to the State's National Pension Reserve Fund as part of the scheme to recapitalise the banks.
The court was previously 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.
In an affidavit, BoI CEO Richie Boucher said that, following recapitalisation of the bank by the Government in March 2009 and further capital-raising measures in March 2010, the Irish National Pensions Reserve Fund Commission now holds some 1.83 billion units of preferred stock in BoI, carrying a dividend entitlement of 10.25pc per annum.
The capital stock of BOI is €1.21bn and its stock premium account €5.099 bn.