Written answers
Wednesday, 6 May 2015
Department of Finance
State Banking Sector
Michael McGrath (Cork South Central, Fianna Fail)
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166. To ask the Minister for Finance the current value of the State's investments in Allied Irish Banks, Bank of Ireland and Permanent TSB; and if he will make a statement on the matter. [17743/15]
Michael Noonan (Limerick City, Fine Gael)
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The current valuation of the State's remaining investments in the banks are:
| Bank | Investment type | Valuation | Source |
|---|---|---|---|
| Allied Irish Banks | Equity and preference shares Contingent capital (CoCo) | €11.7bn €1.6bn | ISIF end 2014 preliminary valuation Par redemption value |
| Bank of Ireland | Equity | €1.6bn | Irish Stock Exchange closing price 1st May 2015 |
| Permanent TSB | Equity | €1.5bn | At €4.50 per share see below |
The Permanent TSB capital raise was completed by close of business 5thMay. As part of the capital raise, the bank asked the Minister for Finance to sell some of the State's shares to allow it meet the 25% minimum free float requirements of the Irish and London Stock Exchanges. The Minister agreed to this request and the shares were sold at a price of €4.50 generating total proceeds of €97.2 million. This price of €4.50 was used in calculating the value of the State's residual equity stake included in the table above.
As part of the capital raise, the bank agreed to repurchase the Contingent Capital ("CoCo") from the State at a price equivalent to 102.6% of the par value of €400 million. Including accrued interest, the total proceeds agreed in relation to the CoCo are €442 million. This transaction is due to complete by close of business 7thMay.
In summary, the combined proceeds for the State from the share sale and CoCo repurchase are expected to total €539m.
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