Michael McGrath (Cork South Central, Fianna Fail)
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312. To ask the Minister for Finance the terms under which Allied Irish Banks can redeem the contingent convertible bonds which the State holds in the bank; the manner in which a redemption of these bonds would impact on the State’s finances; and if he will make a statement on the matter. [37875/15]

Michael Noonan (Limerick City, Fine Gael)
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The State holds €1.6 billion of contingent convertible capital notes in AIB which were issued on 26 July 2011. The interest payable on these securities is €160 million per annum. The maturity date of this instrument is 28 July 2016, upon which date it is expected that the full value of the notes will be returned to the State by the bank. As I stated in my Budget 2016 speech the proceeds from the sale and redemption of the State's investments in the banks will be used to reduce the national debt.

Michael McGrath (Cork South Central, Fianna Fail)
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313. To ask the Minister for Finance the terms under which Allied Irish Banks can redeem the preference shares which the State holds in the bank; and if he will make a statement on the matter. [37876/15]

Michael Noonan (Limerick City, Fine Gael)
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The State holds €3.5 billion of preference shares in AIB. These were acquired on 13 May 2009. The interest payable on these securities is €280 million per annum. The shares were purchased at a price of €1.00 per share and thus the state owns 3.5 billion shares. The 2009 Preference Shares may be purchased or redeemed at the option of AIB, in whole or in part, at a subscription price of €1.25 per share, after a step-up of 25% was applied in 2014 as per the conditions of the instrument.

As the Deputy will be aware, work is continuing between my Department, AIB and its regulator in relation to potential capital restructuring options and sequencing in order to maximise the return of cash to the State from our AIB investments over time. These decisions include considerations around the potential restructuring of the Preference Shares, which it is possible for the bank to redeem or, alternatively, convert to ordinary shares with my prior  agreement.

Michael McGrath (Cork South Central, Fianna Fail)
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314. To ask the Minister for Finance the income in cash terms received by the State in respect of the preference shares which it holds in Allied Irish Banks; and if he will make a statement on the matter. [37877/15]

Michael Noonan (Limerick City, Fine Gael)
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The State holds €3.5 billion of preference shares in AIB. These were acquired on 13 May 2009. The interest payable on these securities is €280 million per annum and is payable in cash or ordinary shares in the event of non-payment in cash. AIB issued ordinary shares to the State in lieu of the dividend due on the preference shares in May 2010, May 2011, May 2012, May 2013 and May 2014. The State received a cash dividend of €280m in relation to its 2009 Preference Shares for the first time in 2015.