Kevin Humphreys (Dublin South East, Labour)
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To ask the Minister for Finance if he will outline if any discussions have taken place with Bank of Ireland or other private investors in the last six months on the sale or repurchase of the €1.8 billion of State owned preference shares in Bank of Ireland; and if he will make a statement on the matter. [16196/13]

Michael Noonan (Limerick City, Fine Gael)
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At its recent results briefing, Bank of Ireland indicated that it was considering a range of options relating to its preference shares issuance. I can confirm to the Deputy that officials in the Department of Finance, as part of their regular interaction with Bank of Ireland management, have discussed options regarding the State’s current holding of €1.8bn of preference shares. Should an opportunity arise to sell the shares or have them redeemed, the transaction will be considered having assessed the best interests of the State. I can also confirm to the Deputy that no discussions have been held between private investors and the Department of Finance in relation to the sale of the €1.8bn of State owned preference shares in the Bank of Ireland.

Kevin Humphreys (Dublin South East, Labour)
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To ask the Minister for Finance the dividend the State is due to receive on it's €1.8 billion of preference shares in Bank of Ireland in 2013; the way the preference shares are structured; if the coupon will increase in the future; and if he will make a statement on the matter. [16197/13]

Kevin Humphreys (Dublin South East, Labour)
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To ask the Minister for Finance the dividend the State is due to receive on it's €3.5 billion of preference shares in AIB in 2013; the way the preference shares are structured; if the coupon will increase in the future; and if he will make a statement on the matter. [16198/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 227 and 228 together.

Bank of Ireland

As at 31 December 2012, there were 1.8bn units of Preference Stock in issue. The shares pay a fixed coupon of 10.25%. On 20 February 2013, the State received a cash dividend of €188m on the Preference Stock.

The structure of the Stock includes a provision for a step-up on the principal of 25% if they are not redeemed by March 2014. This would result in an additional liability for the bank of €450m, but payable to the State only on redemption. The step-up applies only to the principal amount and not to the coupon payable.

Allied Irish Bank

As at 31 December 2012, there were 3.5bn units of Preference Stock in issue. The shares pay a fixed coupon of 8%. The State expects a dividend of €280m to be paid on May 13th, 2013. From 2010 to 2012 this dividend has been in the form of bonus shares.

The structure of the Stock includes a provision for a step-up on the principal of 25% if they are not redeemed by May 2014. This would result in an additional liability for the bank of €875m but payable to the State only on redemption. The step-up applies only to the principal amount and not to the coupon payable.

Kevin Humphreys (Dublin South East, Labour)
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To ask the Minister for Finance if any attempts have been made in the last six months to sell the contingent capital instruments in AIB worth €1.6bn and Permanent TSB worth €0.4bn; the reaction from private investors to this; and if he will make a statement on the matter. [16199/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware from previous statements I have made the State will seek to exit its various holdings (including the contingent capital instruments in AIB and Permanent TSB) at the appropriate time and when market conditions permit. On the back of the successful sale of the Bank of Ireland contingent capital instruments a number of investment banks and market intermediaries have, over the past few months, flagged potential market appetite for the remaining State contingent capital investments. My officials assess the merits of all market feedback received and consider the implications of that feedback for the objective of achieving the most favourable outcome for the taxpayer from all of the bank investments held by the State.