Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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52. To ask the Minister for Finance if the preference shares held in Bank of Ireland by the State are callable at the discretion of BOI; if there are any restrictions on this discretion; if the State is compelled to sell the preference shares to Bank Of Ireland should the bank seek to buy them at any time; if the preference shares are convertible to ordinary shares; if so, has the State the option of such conversion and if he will make a statement on the matter. [51237/13]

Michael Noonan (Limerick City, Fine Gael)
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I can confirm for the Deputy that the Bank of Ireland Preference Shares held by the State can be redeemed at the sole discretion of the Bank at any time, subject to the approval of the Central Bank of Ireland. Any approval of the Central Bank of Ireland would take into account the regulatory capital position of the Bank at the time of such a proposal to redeem. Aside from the callable price being a minimum of par, there are no other restrictions which would prevent the Bank from redeeming the Preference Shares. As a separate consideration, any option to sell the Preference Shares to 3rd party investors would be a decision for the State.

I can also confirm for the Deputy that the terms of the Preference Shares do not include any provision relating to the conversion of the Preference Shares to ordinary shares.