Tuesday, 26 February 2013

Questions (201)

Pearse Doherty


201. Deputy Pearse Doherty asked the Minister for Finance further to the announcement on 25 July 2011, of the sale of a 35% stake in Bank of Ireland to a group of North American investors for a price of up to €1.123bn, if he will confirm the sums received to date; the date received, and a schedule of any further payments due. [9765/13]

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Written answers (Question to Finance)

On 25 July 2011, the Minister for Finance announced that a group of investors had committed to buy up to €1.1bn of the NPRF’s shares in Bank of Ireland. This commitment reduced, from €1.9bn to €0.8bn (58% reduction), the potential maximum cost for the State to meet the bank’s PCAR equity capital requirement. As a result of investment from other non-Government sources, the total cost to the State (through the NPRF) from underwriting the bank’s equity capital raise reduced from €0.8bn to €0.2bn (including net underwriting fees received by the NPRF of €0.05bn). The actual amount sold by the NPRF to the investors was 10.5bn Bank of Ireland shares at a price of 10c per share. The disposal of these shares took place in two tranches. The first disposal for €0.24bn settled on 2 August 2011 with the second, and final, tranche for €0.81bn settling on 17 October 2011.

The net proceeds from the disposals were transferred, on foot of a Ministerial Direction, from the NPRF to the Exchequer within 5 days of receipt from the investors.

There are no further payments due.