Government planning part privatisation of AIB

The Government will release a plan for the part privatisation of AIB as well as the restructuring of the €3.5bn of preference shares and €1.6bn of contingent convertible bonds soon after the release of its 2014 results next March, according to market sources.

The Government has pumped nearly €21bn into the 99.8% State-owned bank. It also holds €3.5bn in preference shares and €1.6bn in contingent convertible bond notes.

One source said the most likely outcome is that the contingent convertible notes will be refinanced through a combination of alternative tier one debt and subordinated debt. The Government is likely to hold on to half of the preference shares and convert the other half into common equity, the source added. A minority stake in the bank of between 25% and 49% will then be floated on the Irish Stock Exchange.