I propose to take Questions Nos. 227 and 228 together.
Bank of Ireland
As at 31 December 2012, there were 1.8bn units of Preference Stock in issue. The shares pay a fixed coupon of 10.25%. On 20 February 2013, the State received a cash dividend of €188m on the Preference Stock.
The structure of the Stock includes a provision for a step-up on the principal of 25% if they are not redeemed by March 2014. This would result in an additional liability for the bank of €450m, but payable to the State only on redemption. The step-up applies only to the principal amount and not to the coupon payable.
Allied Irish Bank
As at 31 December 2012, there were 3.5bn units of Preference Stock in issue. The shares pay a fixed coupon of 8%. The State expects a dividend of €280m to be paid on May 13th, 2013. From 2010 to 2012 this dividend has been in the form of bonus shares.
The structure of the Stock includes a provision for a step-up on the principal of 25% if they are not redeemed by May 2014. This would result in an additional liability for the bank of €875m but payable to the State only on redemption. The step-up applies only to the principal amount and not to the coupon payable.