Michael McGrath
Ceist:79. Deputy Michael McGrath asked the Minister for Finance the current value assigned to the State's investment in Bank of Ireland; and if he will make a statement on the matter. [52426/13]
Amharc ar fhreagraThursday, 5 December 2013
Ceisteanna (79)
Freagraí scríofa
At its peak, the State had invested just over €4.7 billion in Bank of Ireland with €1 billion of this investment held by the Minister directly (the Contingent Capital Notes or “Coco’s”) and the remainder held by the Directed Portfolio of the National Pension Reserve Fund. The State has since sold the Coco’s for €1.056 billion recording a profit and as I announced yesterday the State has now concluded a transaction which will see the State recoup its investment in the bank’s Preference Shares.
The State will receive 100% of par value on €537 million of the securities which the bank was entitled to redeem through the issuance of new equity and has secured a price of 104.75% of par on the remaining €1.3 billion of preference shares which have been sold to investors following a book build exercise by a consortium of banks. The total proceeds from this transaction, including accrued interest, will be approximately €2.05 billion. The value of the State’s remaining equity stake in the bank is circa €1.2 billion based off the latest share price of 26c per share. This represents c. 14.0% of the bank after account is taken of new shares that will be issued to investors.