Written answers
Tuesday, 2 July 2013
Department of Finance
Bank Guarantee Scheme Bond Repayments
Michael McGrath (Cork South Central, Fianna Fail)
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247. To ask the Minister for Finance the losses imposed on subordinated bondholders in covered institutions from liability management exercises in each year since 2008; the number of legal actions currently under way against the State in respect of these actions; and if he will make a statement on the matter. [31963/13]
Michael Noonan (Limerick City, Fine Gael)
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The following table details the liability management exercises.
| - | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| - | €m | €m | €m | €m | €m |
| Total Subordinated Bonds: | |||||
| BoI(1) | |||||
| Consideration2 | 600 | 700* | 3,300* | 800* | N/a |
| Nominal Value | 600 | 1,700 | 4,700 | 2,300 | N/a |
| Average Discount | 0% | 59% | 30% | 65% | N/a |
| AIB (incl EBS) | |||||
| Consideration | 200 | 1,366 | 1,842 | 1,052 | N/a |
| Nominal Value | 200 | 2,470 | 2,377 | 4,882 | N/a |
| Average Discount | 0% | 34.97% | 37.80% | 72.58% | N/a |
| Permanent TSB | |||||
| Consideration | 162 | N/a | N/a | 455* | N/a |
| Nominal Value | 162 | N/a | N/a | 1,459 | N/a |
| Average Discount | 0% | N/a | N/a | 69% | N/a |
| IBRC (incl INBS)3 | Ended 30 Sep 2008 | Ended 31 Dec 2009 | Ended 31 Dec 2010 | Ended 31 Dec 2011 | Ended 31 Dec 2012 |
| Consideration | 72 | 895 | 301 | 34 | N/a |
| Nominal Value | 102 | 2,784 | 1,890 | 174 | N/a |
| Average Discount | 29.4% | 67.8% | 84.1% | 80.5% | N/a |
*Includes amounts redeemed at par
1) BOI figures are rounded to their nearest hundred million.
2) Consideration provided as part of the Liability Management Exercises was in the form of cash, equity and other debt instruments.
3) Foreign exchange rates are as at end financial period.
The purpose of the Liability Management Exercise (LME) transactions was to create additional core tier 1 capital and to strengthen the quality of the capital base of the Banks.
Since this Government came to into power, we reduced the cash required from the State by €5.8bn, from burden-sharing with subordinated bondholders. The contribution from burden-sharing with bondholders amounts to approximately €15bn since the banking crisis began.
There are currently no legal actions under way against the State in respect of these actions.
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