I invested on behalf of the State €2.3 billion in Permanent TSB Group Holdings (formerly Irish Life & Permanent Group Holdings) in July 2011 in return for 36,249,014,972 ordinary shares (at an issue price of €0.06345 per share), amounting to 99.24% of the shares in issue. The shares are held at their nominal value in the Finance Accounts. Permanent TSB plc also issued €0.4 billion of convertible contingent capital notes, with an annual coupon of 10%, to the Government as part of the recapitalisation of the Group. Interest payments of €40 million were received by the State in July 2012.
As the Deputy will be aware, the State paid consideration of €1.3 billion to acquire a 100% interest in Irish Life in June 2012. The shares are held at this value in the Finance Accounts and do not get revalued on a regular basis. In arriving at the consideration agreed in March 2012, we reviewed all information available to us from the sales process which was postponed in late 2011, developments since that time in Irish Life and the Irish economy, movements in industry peer group valuation multiples and improvements in bond yields, particularly in Ireland. We are not aware of any recent issues or events which would materially impact any valuation of Irish Life, positively or negatively, but cannot be definitive as the circumstances change on a continuous basis.
