Terence Flanagan
Question:63. Deputy Terence Flanagan asked the Minister for Finance his views on a matter (details supplied) regarding a bank; and if he will make a statement on the matter. [39533/14]
View answerThursday, 16 October 2014
Questions (63)
Written answers
As the Deputy will be aware the coupon due on the AIB preference shares is payable in the month of May each year. Under the preference share agreement it is a matter for the Board of the bank to decide on whether this payment is made in the form of cash or shares.
When taking this decision the Board must review the financial position of the bank to ensure that the bank remains appropriately capitalised. Since the inception of the preference share in 2009 the bank has paid each of the coupons in the form of a bonus share issue as provided for under the preference share agreement. Any cash that might have been paid each year was therefore retained in the bank in which we are now a 99.8% shareholder. This year the Board's decision was influenced by the proximity of the ECB's Comprehensive Assessment exercise.
Further details in relation to the provisions governing the State's preference shares can be found in AIB's Memorandum and Articles of Association which is a public document.