AIB to raise €1.5bn with sale of M&T stake at 7% discount

AIB is to sell its 22.4% stake in M&T for €1.5bn, a discount of 7% to Tuesday’s value of the bank’s stake holding in the US regional bank.

The disposal is expected to generate €0.9bn to boost AIB’s capital fund raising, while the rest of the cash will be used as an additional source of liquidity to support its business activities, the bank said in a statement.

AIB has already raised €2.5bn from the sale of its Polish banking subsidiary to Bank Santander for €2.5bn.