Monday 19 March 2018

AIB shares start trading on junior exchange in Dublin

AIB Headquarters in Dublin Photo: Bloomberg
AIB Headquarters in Dublin Photo: Bloomberg

Paul O'Donoghue

Over 2.7bn ordinary AIB shares commenced trading on the junior ESM market in Dublin this morning, the first shares the bank has issued since its bailout during the financial crisis.

2.714 billion new ordinary shares were issued this morning as part of the bank’s capital restructuring programme.

Under the reorganisation, AIB will pay €1.7bn to the State from the partial redemption of preference shares issued to the Government in 2009. As well as this, the maturity of the Contingent Capital Notes will result in a further repayment of €1.6bn of capital to the State on next July.

The remainder of the preference shares will be converted into ordinary shares that will result in a net increase in Tier 1 Capital of €1.8bn.

Last week shareholders backed a plan which will see AIB repay €1.7bn to the State in the coming weeks. The State owns 99.8pc of the bank.

Finance minister Michael Noonan has said the Government will start the process of selling off its stake in AIB as soon as the general election is over if it is returned to office. He said he would "immediately press the button" to start a sale of 25pc of the bank if he is still in the job after the election.

Mr Noonan said the lender would have its principle listing on the London Stock Exchange. Up to now, AIB's main listing has been in Dublin.

AIB is currently valued at just under €12bn, but the minister said the only true way to value the business was to transfer it back to the private sector. New AIB shares start trading on junior exchange market.

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