Pearse Doherty (Donegal, Sinn Fein)
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184. To ask the Minister for Finance further to Parliamentary Question No. 304 of 24 June, to provide further detail on non-dividend related income; and if he will make a statement on the matter. [36789/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, the State held 3.5 billion of preference shares in AIB. The interest payable on these securities was €280 million per annum and was payable in cash, or in ordinary shares in the event of non-payment in cash. AIB issued ordinary shares to the State in lieu of the dividend due each May between 2010 and 2014 but in 2015 received a cash dividend of €280m for the first time.

In 2016, 1.36 billion of the 3.5 billion 2009 Preference Shares were redeemed at a price equal to 125% of the subscription price paid on issue in 2009. This resulted in the repayment of c. €1.87 billion of capital to the State, inclusive of a c. €166m dividend, representing the accrued dividend on the 3.5 billion 2009 Preference Shares in respect of the period from 13 May 2015 (the €280m dividend payment date) to the date of redemption of the 2009 Preferences Shares. The remainder of the Preference Shares (2.14 billion) were converted into Ordinary Shares.

The Contingent Convertible coupon of €0.64bn relates to €1.6bn of Contingent Convertible capital notes which were issued on 26 July 2011 for a period of 5 years. These instruments carried a coupon of 10% or €160m per annum over the instrument’s life. The €0.64bn represents a €160m coupon in each year 2012-15. The final €160m coupon payment is included in the €1.76bn figure relating to the redemption of the Contingent Convertible instrument.