As the Deputy will be aware, if the annual coupon payment of €280m on the State's Preference Shares in AIB is not made in cash, AIB must make the payment in shares. Since the first coupon was due in 2010, as a result of the bank's need to preserve capital, AIB has paid this annual coupon each year in shares as set out below.
Year
|
Number of shares issued
|
Issue price €
|
2010
|
198,089,847
|
1.4135
|
2011
|
1,247,273,565
|
0.2245
|
2012
|
3,623,969,972
|
0.0773
|
2013
|
4,144,055,254
|
0.0676
|
2014
|
2,177,293,934
|
0.1286
|
The price at which the shares are issued is calculated based on the average market price for the thirty trading days preceding the 13th of May payment date. Therefore the quantity of shares the State received on each occasion was a function of the coupon due of €280m divided by this formula driven share price. This formula is embedded in the original terms of the Preference Share investment made by the State in 2009 and the bank's Articles of Association which can be found on the bank's website.