Dáil Éireann Debate, Thursday - 13 July 2017
134. Deputy Michael McGrath asked the Minister for Finance the fees his Department has paid to third parties relating to a possible flotation of a bank (details supplied); and if he will make a statement on the matter. [33769/17]
View answerAs the Deputy is aware, in line with the State agreements with AIB, all fees incurred by the State in relation to the IPO will be paid by the bank.
Following a successful transaction, fees are payable to the selling syndicate of investment banks and are proportionate to the value of the transaction. The fees that have been negotiated by my officials are approximately 0.4% of the value of the transaction based on the base deal size (€3 billion), which gives a figure of approximately €12 million. This is very competitive by reference to comparable transactions in Europe. The fee is split across all appointed syndicate banks and as such the number of firms involved (also within precedent), does not affect the overall fee level payable.
Fees will also be payable to our independent financial advisor, Rothschild & Sons, communications advisers Gordon MRM and Citigate Dewe Rogerson and our legal advisers, William Fry. Together with some other seller related and underwriter expenses, these fees in total were estimated to be approximately €4m. I will be in a position to disclose a breakdown of exact fees paid to each service provider when all related invoices have been received and processed.
As is normal practice, details of the fees paid by my Department to such parties are disclosed on an ongoing basis under the procurement section of the Department's website:
http://www.finance.gov.ie/who-we-are/financials/consultancy/consultancy/
