State poised to offload €1.6bn AIB bond

Ireland is poised to sell on its AIB Contingent Convertible (CoCo) as it seeks to capitalise on positive sentiment in the aftermath of the blow-out sovereign €5bn bond this week, according to sources.

The rumours came hours after Bank of Ireland launched a €500m five-year bond in a bid to capitalise on the positive sentiment towards Ireland evident following a landmark €5bn sovereign issue earlier this week.

The AIB sale would replicate its exit from a €1bn three-year Bank of Ireland CoCo in January when it made a €10m profit on the position it had owned since the bank’s bailout in 2011.