Dáil Éireann Debate, Tuesday - 18 September 2012
300. Deputy Pearse Doherty asked the Minister for Finance if he will provide an explanation of the €300.273 million receipts under the heading of Interest on Contingent Capital Notes shown in the July 2012 Exchequer statement. [38519/12]
Amharc ar fhreagraI am informed that the €300.273 million in receipts shown in the July 2012 Exchequer statement relate to interest payments on the Contingent Capital Notes the State invested in AIB, BOI and PTSB as part of the recapitalisations completed in last year. In July 2011 the State purchased €3 billion in Contingent Capital Notes in these banks (€1.6 billion in AIB, €1 billion in BOI and €0.4 billion in PTSB) as part of the recapitalisations. These Contingent Capital Notes are subordinated Tier 2 debt instruments with a five year and one day maturity and are convertible into ordinary shares in the event of the bank's Core Tier 1 capital ratio falling below 8.25%. The Notes carry a fixed mandatory interest rate of 10% of the issue price payable annually.
The first of these payments which total €300.273 million was made to the Exchequer in July 2012.
