Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

154. To ask the Minister for Finance the fees his Department has paid to third parties relating to a possible flotation of a bank (details supplied); and if he will make a statement on the matter. [14227/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Department of Finance has to-date paid €385,502 to William Fry Solicitors in relation to work carried out on the capital reorganisation of the bank in 2015 and preparation for a potential IPO of AIB. These fees relate to a period from their appointment in April 2015 (following a competitive tender process) up to the present date. They relate to both IPO preparatory work and related advice given to my Department concerning the capital reorganisation undertaken by AIB in December last year which allowed for the return of €1.64bn cash to the State.

The capital reorganisation was necessary to make the bank's capital structure fully compliant with new European rules and was therefore a prerequisite to any disposal of the State's shareholding in AIB. Goldman Sachs also provided financial advice to the Department in respect of this reorganisation on a pro-bono basis.

In December 2015, Rothschild & Sons were appointed as an Independent Financial Advisor to my Department (following a competitive tender process), to assist in the preparation for a potential IPO. No fees have yet been paid in this regard.

My Department has also agreed with AIB that all third party fees incurred by the Department of Finance in preparation for an IPO will be reimbursed by the bank.

The Department of Finance regularly publishes details of all consultancy fees paid, attributed to the relevant project. Fees paid to the end of March 2016 can be found here: .