Ruth Coppinger (Dublin West, Socialist Party)
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15. To ask the Minister for Finance if he will report on the recent sale of shares in Permanent TSB and the repayment of the Government’s contingency capital notes in the bank; and if he will make a statement on the matter. [17573/15]

Michael Noonan (Limerick City, Fine Gael)
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The announcement by Permanent TSB (PTSB) that it has successfully completed a capital raise as part of its capital plan is a significant milestone in its recovery which gained momentum recently with the European Commission approval of its Restructuring Plan.  PTSB has raised €525 million on new capital and through a series of transactions returned €539 million to the State.

The capital raise was required as a result of PTSB failing the SSM Adverse Stress Test, announced in late 2014. PTSB agreed a Capital Plan with the SSM which required them to raise €525 million of new capital - €400 million equity and €125 million Additional Tier 1.

As part of this transaction the State will recoup €509 million in capital receipts from the sale of shares and the repurchase of the Contingent Capital Notes (CoCos), bringing the total capital receipts to c €1.8 billion since our investment in 2011-2012. As a result of much hard work over 45% of the capital invested by the State will have been repaid before taking account of investment income, fees and our residual shareholding.  The CoCos were repurchased at market value - a €10.5 million premium over par value. 

As a result of PTSB moving to a main market listing in London and Dublin a minimum 25% free float is required. To enable that free float I was requested by the board of PTSB to sell €98 million or 22 million shares to reduce the State's shareholding to 75%. The move to the main markets in London and Dublin will be positive for PTSB and allows the State additional flexibility and liquidity to manage its sell down in due course.

Existing shareholders will be able to subscribe for new ordinary shares at the same price as was available to new investors in the Placing by way of an Open Offer which is being managed by PTSB.

Changes to the Relationship Framework were required in order to facilitate the migration to the main markets but will not alter the overall relationship between PTSB and the State which has been professional and constructive to date. 

I am pleased that we have maintained a 75% shareholding in PTSB on behalf of the taxpayer and that high quality international institutional investors have joined us as shareholders - 83% of investors were from the UK or US. It is also noteworthy that the €125 million AT1 issuance is the first such issuance in Ireland.

While much work remains to be done I am satisfied with the continued progress and in particular the fact that the capital raise was completed without the need for investment from the State highlighting the progress that PTSB has made since 2011.