Michael McGrath (Cork South Central, Fianna Fail)
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309. To ask the Minister for Finance the professional and consultancy fees incurred to date in 2017 in respect of the planned initial public offering of a bank (details supplied); the estimated overall cost of professional and consultancy fees likely to be incurred as part of the initial public offering; and if he will make a statement on the matter. [28353/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy should be aware that in line with the State agreements with AIB, all fees incurred by the State in relation to an IPO transaction will be paid by the bank.

Fees are only payable to the selling syndicate of nine investment banks on the completion of a successful transaction, and are proportional to the value of the transaction. As such it is not possible to provide an exact quantum of fees payable as no transaction has occurred yet. However the fees that have been negotiated by my officials are approximately 0.4% of the total transaction size. This is very competitive by reference to comparable transactions in Europe. The fee is split across all appointed syndicate banks and as such the number of firms involved (also within precedent), does not affect the overall fee level payable.

The prospectus published by AIB estimates the potential fee with the assumption that the shares are listed at the mid-point of the published price range, which gives an indicative figure of €12 million.

Fees will also be payable to our independent financial advisor, Rothschild & Sons, communications advisers Gordon MRM and Citigate Dewe Rogerson and our legal advisers, William Fry. Together with some other seller related and underwriter expenses, these fees are estimated in the prospectus to be approximately €4m.

As is normal practice, details of the fees paid by my Department to such parties are disclosed on an ongoing basis under the procurement section of the Department's website:

In addition to the above, AIB will also incur its own fees and expenses in relation to the initial public offering which include broker, corporate advisory, accounting and legal fees. These fees and expenses amount to €25m, are a matter for the board and management of AIB, and are borne by the company directly. Full details are disclosed as part of their published prospectus on p661. The prospectus is available on the AIB Investor Relations website at the following link:

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