Pearse Doherty (Donegal, Sinn Fein)
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101. To ask the Minister for Finance to clarify the commitment in the programme for Government not to sell more than 25% of any bank before the end of 2018 plus any small additional shareholding required by the underwriter to complete the sales process by clarifying the meaning for each of the State-backed banks, for example if in the case of Permanent TSB it means a further 25% and in the case of Bank of Ireland if it means 25% of the existing shares or if it could mean the entire Government shareholding. [11275/16]

Michael Noonan (Limerick City, Fine Gael)
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The programme for partnership Government document states that we will "not sell more than 25% of any bank before the end of 2018 (plus any small additional shareholding required by the under-writer to complete the sales process)." The provision is an acknowledgement that we intend to exit these investments in a measured and careful manner.

The provision refers to 25% of total shares outstanding in each of the banking institutions in which the State has a stake. In simple terms, we are committing to a maximum disposal limit of approximately one quarter of the State's shareholding in AIB (which is c. 99.8% of the total issued share capital), approximately one third of the State's shareholding in PTSB (which is c. 75% of total issued share capital) and the remainder of the State's shareholding in Bank of Ireland (which is c. 14% of total issued share capital) before the end of 2018. The reference to "any small additional shareholdings required" is to cover an IPO of AIB where the customary market practice in an equity capital markets transaction of that  nature is to include an over-allotment option to the selling syndicate for post-IPO price stabilisation purposes.

To be clear, the provision in the Programme for Government is in no way a commitment to the sale of shares in that timeframe, only a clear signal that the State should exit these investments in a controlled manner over time, with the primary objective of recovering the maximum amount of money for the Irish taxpayer.