Aindrias Moynihan (Cork North West, Fianna Fail)
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168. To ask the Minister for Finance further to the recent sale of over 25% of the State's equity in a bank (details supplied), the estimated costs involved; and the costs by the individual service providers engaged. [33080/17]

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.

Following a successful transaction, fees are payable to the selling syndicate of investment banks and are proportionate to the value of the transaction. The fees that have been negotiated by my officials are approximately 0.4% of the value of the base deal size (€3 billion), which gives a figure of approximately €12 million. 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.

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 in total were estimated to be approximately €4m. I will be in a position to disclose a breakdown of exact fees paid to each service provider when all related invoices have been received and processed.

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 has also incurred 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 €25 million, 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: