asked the Minister for Finance the portion of the recent Government loan denominated in ECU which was taken up by the underwriters; the commission which was paid to the underwriters; the reason the Government stockbroker did not have sole charge of the issue; and if he will make a statement on the matter.
Written Answers. - Government Loans Taken Up.
48.
The full amount of the stock in question, namely £77.4 million approximately or 100 million ECU, was taken up by Allied Irish Banks. Consequently, this bank was in effect the sole underwriter of the issue.
A fee of three-quarters of one per cent of the nominal amount of the issue was paid for underwriting, management and selling the stock.
The reason that the Government stockbroker was not the sole broker to the issue is that, unlike other domestic Government bond issues, a market in the ECU denominated stock is being made, not by the authorities, but by Allied Irish Banks. It was accordingly considered appropriate that Allied Irish Securities, a stockbroking subsidiary of the AIB group, should be joint broker to the issue, along with the Government broker, Butler and Briscoe.