Written answers

Wednesday, 12 January 2011

Department of Finance

Bank Guarantee Scheme

2:30 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 135: To ask the Minister for Finance the amount of senior and subordinated bonds outstanding in Anglo Irish Bank as at 29 September 2008; the amount of senior and subordinated bonds outstanding in Anglo Irish Bank as at 30 September 2008 which were covered by the bank guarantee scheme; the amount of senior and subordinated bonds in Anglo Irish Bank which matured between 30 September 2008 and 29 September 2010 and since 29 September 2010; the amount of senior and subordinated bonds in Anglo Irish Bank bought back by the bank; the amount of senior and subordinated bonds currently outstanding in Anglo Irish Bank covered by the eligible liabilities guarantee; the amount of senior and subordinated bonds currently outstanding in Anglo Irish Bank outside the scope of eligible liabilities guarantee; and if he will make a statement on the matter. [1412/11]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Minister, Department of Finance; Dublin West, Fianna Fail)
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The detailed information requested by the Deputy is set out in the tables below. Holders of subordinated debt in the bank have in particular, following the outcome of the Liability Management Exercise (LME) concluded by the bank late last year, experienced very significant burden sharing through the very deep discounts offered for these liabilities.

DateSenior Unsecured bonds outstandingSubordinated bonds outstandingAdditional Information
29 September 2008€11.0 billion (EMTN, US Extendible, Schuldshein)€.4.8 billion (Dated & Undated)-
30 September 2008€11.0 billion (EMTN, US Extendible, Schuldshein)€2.1 billion (Dated)Covered by Bank Guarantee Scheme
Bonds Maturing
DateSenior Unsecured bonds maturedSubordinated bonds maturedAdditional Information
Between 30 September 2008 & 29 September 2010€14.6 billionNIL-
Since 29 September 2010€192 millionNILScheduled contractual maturities since 29 September 2010.
Liability Management Exercise
As the result of Liability Management Exercises (LMEs) performed by the bank in 2009 and 2010 the following exchanges and cancellation/early maturities have occurred since 29 September 2010:
* Voted Yes: Exchanged** Market - Voted No or No Vote: Cancelled/ Matured*** Anglo - No Vote: Cancelled/ Matured
SUBORDINATED DEBT:€1,504,538,500€119,668,250€750,793,250
*Noteholders voting yes receive consent fee.
*Bonds offered by noteholders voting yes (exchanged for ELG senior unsecured notes).
**Bonds held by noteholders who voted 'no' or elected not to vote (bonds redeemed through the clean up call).
***Bonds held by Anglo Irish Bank Ltd following the LME process in 2009. (the bonds were cancelled as part of the LME process in December 2010.)
Outstanding
DateSenior Unsecured bonds bought backSubordinated bonds bought back /exchangedAdditional Information
Between 30 September 2008 - 31 December 2010€177.6 million€4.1 billionPrior to Maturity
DateSenior Unsecured bondsSubordinated bondsAdditional Information
Currently outstanding in Anglo Irish Bank covered by the Eligible Liabilities Guarantee Scheme€2.9 billionNILSubordinated Debt is not "covered" under the ELG Scheme
Currently outstanding in Anglo Irish Bank not covered by the Eligible Liabilities Guarantee Scheme€3.9 billion€768 million*-

*Included in the total figure of €0.768bn of subordinated debt is the sum of €0.348bn which relates to 300,000 Non-Cumulative Preference Shares.

The inclusion of these preference shares in the bank's subordinated debt is required by accounting rules notwithstanding that they are now owned by the Minister as they remain technically a debt due to the shareholder on a winding up, albeit one ranking after all other debtors.

Note:

Please note exchanges rates as at 31 December 2010 have been used where possible in order to provide a corresponding EUR equivalent.

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