Dáil Éireann Debate, Tuesday - 3 November 2015
312. Deputy Michael McGrath asked the Minister for Finance the terms under which Allied Irish Banks can redeem the contingent convertible bonds which the State holds in the bank; the manner in which a redemption of these bonds would impact on the State’s finances; and if he will make a statement on the matter. [37875/15]
View answerThe State holds €1.6 billion of contingent convertible capital notes in AIB which were issued on 26 July 2011. The interest payable on these securities is €160 million per annum. The maturity date of this instrument is 28 July 2016, upon which date it is expected that the full value of the notes will be returned to the State by the bank. As I stated in my Budget 2016 speech the proceeds from the sale and redemption of the State's investments in the banks will be used to reduce the national debt.
