Michael McGrath (Cork South Central, Fianna Fail)
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79. To ask the Minister for Finance the current value assigned to the State's investment in Bank of Ireland; and if he will make a statement on the matter. [52426/13]

Michael Noonan (Limerick City, Fine Gael)
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At its peak, the State had invested just over €4.7 billion in Bank of Ireland with €1 billion of this investment held by the Minister directly (the Contingent Capital Notes or “Coco’s”) and the remainder held by the Directed Portfolio of the National Pension Reserve Fund. The State has since sold the Coco’s for €1.056 billion recording a profit and as I announced yesterday the State has now concluded a transaction which will see the State recoup its investment in the bank’s Preference Shares.

The State will receive 100% of par value on €537 million of the securities which the bank was entitled to redeem through the issuance of new equity and has secured a price of 104.75% of par on the remaining €1.3 billion of preference shares which have been sold to investors following a book build exercise by a consortium of banks. The total proceeds from this transaction, including accrued interest, will be approximately €2.05 billion. The value of the State’s remaining equity stake in the bank is circa €1.2 billion based off the latest share price of 26c per share. This represents c. 14.0% of the bank after account is taken of new shares that will be issued to investors.

Michael McGrath (Cork South Central, Fianna Fail)
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80. To ask the Minister for Finance the implications for the State's investment in Bank of Ireland of the recently completed asset quality review; and if he will make a statement on the matter. [52427/13]

Michael McGrath (Cork South Central, Fianna Fail)
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81. To ask the Minister for Finance the implications for the State's investment in AIB of the recently completed asset quality review; and if he will make a statement on the matter. [52428/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 80 and 81 together.

Following the announcements by both AIB and Bank of Ireland this week that they require no further capital following the completion of the asset quality review there has been a neutral market reaction. As of lunchtime on 4 December 2013 the Bank of Ireland share price is little different from where it was trading last week and the pricing of both banks debt instruments remain little changed. As the Deputy will be aware, I announced yesterday a transaction that will see the State exit its preference shares in Bank of Ireland for proceeds in excess of €2 billion, which included a profit of €62 million for the taxpayer. This leaves the State with just an equity investment in the bank which is worth €1.2 billion based on the current share price.