Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

213. To ask the Minister for Finance if he will confirm that in June 2013 AIB was unable to repay a €3.5 billion loan owed to the National Treasury Management Agency. [34262/13]

Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

214. To ask the Minister for Finance if he will confirm any bond default by AIB and provide full details of same. [34263/13]

Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

215. To ask the Minister for Finance if he has authorised the acceptance of AIB shares instead of cash repayments for bonds repayments due by AIB. [34264/13]

Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

216. To ask the Minister for Finance if he will provide details of all instances where AIB bank shares have been accepted to meet bond payment dates. [34265/13]

Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

217. To ask the Minister for Finance the value that was put on AIB shares taken in as payment in meeting any bond application. [34266/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 213 to 217, inclusive together.

I have been informed by AIB that with regard to the €3.5bn 2009 Preference Shares held by the NPRFC, AIB has not paid any cash dividend to date (coupon rate of 8% amounting to €280 million). In settlement of this non-payment, AIB shares were issued to the NPRFC as follows: Year of Settlement No of Shares Issued: 2010 - 198,089,847; 2011 - 1,247,273,565; 2012 - 3,623,969,972; 2013 - 4,144,055,254.

The process for determining the number of shares paid was determined in line with the 2009 Preference Share Subscription Agreement.

2009 Preference Shares do not have a repayment date and were not due for repayment in 2013. The coupon on the 2009 Preference Shares was paid in shares in May of 2013 as per AIB's stock exchange announcement, a link to which is provided as follows:_d_press_releases&cid=1367253399001&c=AIB_Press_Releas&channel=IRHP&position=notfirst

I have also been informed by AIB that with regards to the 2009 Preference Share Agreement AIB has never defaulted on the dividend payment owed on these preference shares. As per the terms of the agreement the dividend can be paid in either cash or shares.

The AIB Preference Shares were issued to the National Pensions Reserve Fund Commission (NPRFC) on 13 May 2009. Under the terms of the Preference Shares, a non-cumulative discretionary cash dividend at 8 per cent per annum may be paid on the anniversary of the issue of those shares if the Board of Directors of AIB decides to pay the dividend. It was necessary for the cash dividend to be discretionary in order to comply with the regulatory capital requirements in place at the time of the issue of the Preference Shares. However, if the discretionary cash dividend is not paid, AIB must issue bonus AIB ordinary shares to the NPRFC equal in value to the cash dividend. As the bonus AIB ordinary shares are issued to the NPRFC under the terms of the 2009 Preference Shares, no additional direction or authorisation from the Minister for Finance is required for the issue of such shares.

The value of the AIB shares held by the NPRF at 31 March 2013 and pending completion of an independent valuation review, comprised:- Ordinary shares, provisionally valued at €0.0079 per share;- Preference shares, provisionally valued at end 2012 valuations of 66% of par

The final year end valuation will be reflected in the Fund's audited financial statements for 2012 which will be published in July 2013.