€3.5bn was invested by way of preference shares in AIB on 13 May 2009. On the 13 May 2010 the NPRFC received 198 million ordinary shares of AIB in lieu of a cash payment of the dividend on the preference shares. The payment was made in the form of ordinary shares as the European Commission requested that discretionary coupon payments on Tier 1 and Upper Tier 2 capital instruments in Bank of Ireland and AIB not be paid while it considered each bank's restructuring plan. This number of shares was equal to the aggregate cash amount of the annual dividend of €280 million, divided by the average price per share in the 30 trading days prior to the payment date.
€3.5bn was invested by way of preference stock in BOI on 31 March 2009. On 22 February 2010 the NPRFC received 184 million units of ordinary stock in lieu of a cash payment of the dividend on the preference stock, this being the number of units equal to the aggregate cash amount of the 2010 dividend of €250 million divided by 100% of the average price per unit of ordinary stock in the 30 trading days prior to the payment date.
As part of BOI's capital raise completed in the first half of 2010, the NPRFC converted 1,663 million units of preference stock into 1,715 million units of ordinary stock through participation in a rights issue and a direct placement of ordinary stock. In addition, as part of the capital raise, the NPRFC received €543m in transaction fees and payment for cancellation of the warrants and the interest rate on the remaining preference shares was increased from 8% to 10.25%.
As a result of the directed investments referred to above, the NPRFC holds 1,900 million units of ordinary stock in BoI and 1,837 million units of 2009 preference stock.