State recoups €170m on BoI investment

The Government has recouped €170m on its €1 billion investment in Bank of Ireland through convertible contingent capital tier 2 notes.

“The minister for finance, Michael Noonan, welcomed the successful completion of the sale of the entire amount of the State’s €1 billion holding of Contingent Capital Notes (CCN’s) in Bank of Ireland at a price of 101% of their par value plus accruedinterest,” the Department of Finance said yesterday evening.

According to Owen Callan, fixed income dealer at Danske Bank, between the interest paid to the Government by Bank of Ireland on the 10% coupon attached to the tier 2 note and the €10m profit it made on the sale, the State has seen a total €170m return on its investment.