As a result of the 2011 Prudential Capital Assessment Review ("PCAR 2011"), Bank of Ireland (the "Bank") was required to raise €4.2 billion regulatory core tier 1 capital. The Bank took various steps to raise this required capital including a rights issue.
I directed the National Pension Reserve Fund (the "NPRF") Commission to participate in the Bank's rights issue. A group of third party investors committed to purchase a significant portion of the State's participation in the Bank's rights issue. A breakdown of the purchase and sale of ordinary stock arising from the PCAR 2011 rights issue is provided below:
Purchase / Sale
|
Number of Units(million)
|
Unit Price(EUR)
|
Consideration(EUR million)
|
Purchase
|
13.12
|
0.10
|
1.312
|
Sale
|
10.51
|
0.10
|
1.051
|
Net Amount
|
6.61
|
0.10
|
0.261
|
Net of fees the total consideration paid by the State for ordinary shock as a result of the PCAR 2011 rights issue was €211 million. The purchase and sale of the Bank's ordinary stock occurred at the same unit price of 10 cents, resulting in no gain or loss for the State as a result of the transaction.