I can inform the Deputy that the table details the amount of public money invested and sums paid by Allied Irish Bank since 2008.
Cash invested by the State
|
-
|
€ billion
|
Government Preference Shares - NPRF
|
|
3.5
|
Contingent Convertible Capital Notes
|
|
1.6
|
Capital - NPRF
|
|
12.5
|
Capital - Exchequer
|
|
2.3
|
Capital contributions (Promissory Notes /Special Investment Shares) - Exchequer
|
|
0.9
|
Total
|
|
20.7
|
|
|
|
Fee Type
|
Note
|
€ billion
|
Guarantee Fees (both ELG and CIFS)
|
1
|
1.3
|
Interest on Contingent Convertible Capital notes
|
|
0.16
|
Re-purchase of AIB Warrants
|
2
|
0.05
|
Total
|
|
1.5
|
Notes:
1) 2012 Exceptional Guarantee fees are the fees paid up to 31/12/2012 and excludes €1.2 million in legal and admin costs.
2) AIB’s warrants were cancelled on 23 December 2010 for consideration of €52.5m paid to the NPRF.
3) The recharge of legal costs of €6.1m received from AIB are excluded from the above table.
AIB’s €1.6bn of Contingent Convertible capital notes were issued on 26 July 2011 for a period of 5 years. These notes will convert or be exchanged into ordinary shares if either a Capital Deficiency or a Non-Viability event occurs as defined in the terms and conditions of the Contingent Convertible capital notes. These instruments carry a coupon of 10% or €160m per annum over the instrument’s life.
The 2009 Preference Shares pay a dividend at a rate of 8% per annum, payable annually in arrears at the discretion of AIB. Based on the nominal amount of €3.5bn of these shares currently outstanding, this equates to a dividend of €280m per annum.
If a cash dividend is not paid, AIB must issue bonus ordinary shares to the holders of the 2009 Preference Shares by capitalising its reserves. The State has never received a cash dividend on these instruments, with the Bank having to-date elected to issue bonus shares.
As the form of dividend to be paid on the 2009 Preference Shares is at the discretion of the Bank, I am not in a position to speculate on future payments.