As detailed in the table the State’s total net notional cash investment in Bank of Ireland (BOI) at 7/12/2012 was €2.1 billion. The State’s current investment in BOI is:
-15% Ordinary Shares (i.e. 4,559 million shares). Share price of BOI at 06/12/12 was 12c.
-€1.8 billion Preference Shares with 10.25% coupon p.a.
-€1 billion Contingent Capital with a 10% coupon p.a.
Net Notional Cash Position of the State from Investment in and support provided to BOI.
€m
|
Notes
|
2008
|
2009
|
2010
|
2011
|
2012(a)
|
Total
|
Cash paid by State
|
|
|
|
|
|
|
|
Preference Shares
|
(c)
|
|
3,500
|
|
|
|
3,500
|
Ordinary Shares (net)
|
|
|
|
|
265
|
|
265
|
Contingent Capital
|
(d)
|
|
|
|
1,000
|
|
1,000
|
Sub Total
|
|
|
3,500
|
|
1,265
|
|
4,765
|
Cash received by State (a)
|
|
|
|
|
|
|
|
Warrants purchased
|
(e)
|
|
|
(491)
|
|
|
(491)
|
Recapitalisation fees
|
|
|
(30)
|
(52)
|
(98)
|
|
(180)
|
2009 Preference Shares
Coupons
|
(f)
(g)
|
|
|
(215)(g)
|
(188)(g)
|
(176)(a)
|
(579)
|
2011 Continent Capital Instrument Coupons
|
|
|
|
|
(42)(g)
|
(93)(a)
|
(135)
|
Exceptional Guarantee Fees CIFS & ELG
|
|
(32)
|
(139)
|
(343)
|
(449)
|
(328)(b)
|
(1,291)
|
Subtotal
|
|
(32)
|
(169)
|
(1,101)
|
(777)
|
(597)
|
(2,676)
|
Total
|
|
(32)
|
3,331
|
(1,101)
|
488
|
(597)
|
2,089
|
Notes:
(a) 2009 Preference Share Coupons and Contingent Capital Coupons for 2012 are those due or paid in the period 01/01/2012 – 7/12/2012.
(b) 2012 Exceptional Guarantee fees are the fees paid up to 31/10/2012.
(c) €3500 million Preference Shares invested in March 2009. €1663 million Preference Shares converted to Ordinary Shares in the May 2010 Capital Raise.
(d) Contingent Capital Investment during 2011 Capital Raise.
(e) Warrants attaching to the 2009 Preference Shares purchased for cash by BOI through private capital raised during the 2010 Capital Raise.
(f) Excludes €250 million paid in shares in February 2010 as a consequence of EU imposed “Dividend Stopper”, subsequently lifted.
(g) Includes cash coupons paid / due in subsequent years with respect to these years.
In the period 30/09/2008 to 13/11/2012 BOI liabilities covered by Exceptional Guarantees have reduced from €136 billion to less than €28 billion. In its Interim Management Statement issued on 13/11/2012 BOI advised that “we are prepared for and ready for the expiry of the ELG”.
BOI have informed me that they cannot forecast potential future coupon payments to the State under the 2009 Preference Shares or 2011 Contingent Capital investment as this would require assumptions regarding the future ownership and /or longevity of these instruments.