Dáil Éireann Debate, Tuesday - 1 December 2015
196. Deputy John McGuinness asked the Minister for Finance the amount of cash transfers made by Allied Irish Banks to the Exchequer in redemption of preference shares, bail-out funds and other Exchequer funding that has been advanced by the State to the bank since 2008; and if he will make a statement on the matter. [42533/15]
View answerAs the deputy is aware, the State holds €3.5 billion of preference shares in AIB. The interest payable on these securities has been €280 million per annum and is payable in cash, or in ordinary shares in the event of non-payment in cash. AIB issued ordinary shares to the State in lieu of the dividend due each May between 2010 and 2014 but in 2015 received a cash dividend of €280m for the first time. When this cash dividend together with income on our Contingent Capital Instrument and all CIFS/ELG guarantee fee income are included, the State has received cash returns of around €2.7 billion from AIB to date.
In addition to this AIB recently secured SSM approval for a redemption of €1.36 billion of the Preference Shares for €1.7 billion, which when combined with accrued interest and the redemption of the EBS Promissory Note will yield approx. €1.64bn for the State in the coming weeks.
Between 2009 and 2011 the State invested around €20.7 billion in AIB, in order to bring stability and sustainability to the bank. These investments took a number of forms including equity and contingent capital, I have given a detailed breakdown of these in a table for the deputy's information. As I have indicated previously, I would expect that the state will be able to recoup the full value of its investment in AIB over the course of time.
|
Year |
Description |
Instrument used |
Cost €'000 |
|
2009 |
AIB Recap - NPRF |
Preference Shares |
3,500 |
|
2010 |
EBS SIS |
Special Investment Share |
625 |
|
Pro Note - EBS |
Promissory Note |
250 |
|
|
AIB Recap - NPRF |
Equity |
3,700 |
|
|
2011 |
PCAR - AIB CoCo |
Contingent Capital |
1,600 |
|
PCAR - AIB Capital Contribution |
Capital Contribution |
2,283 |
|
|
PCAR - AIB Equity/Capital Contribution - NPRF |
Equity/Capital Contribution |
8,771 |
|
|
|
Total Invested |
20,729 |
