Michael McGrath
Question:190. Deputy Michael McGrath asked the Minister for Finance if AIB plans to go ahead with the redemption of its €1.6 billion contingent capital note; and if he will make a statement on the matter. [22431/16]
View answerTuesday, 19 July 2016
Questions (190)
Written answers
Yes, without question this repayment will proceed as planned. As the Deputy is aware, the Contingent Capital Note, or 'CoCo', which was issued by the State to AIB in July 2011, is a contractual commitment and is due to mature later this month. On July 28th, AIB will redeem the CoCo for its full value of €1.6bn, returning this capital to the State along with all interest outstanding.
The redemption of the CoCo removes the final 'legacy' capital instrument of the financial crisis from the balance sheet of AIB and follows on from the 2015 capital reorganisation which allowed for the part redemption of the State's 2009 Preference Shares for €1.7 billion in cash for the State, while converting all remaining Preference Shares into ordinary shares. Following the CoCo redemption, the bank, which has been capital generative since 2014, will have a normalised balance sheet structure.