State to sell further 5% stake in AIB

Once concluded, the sale would see the State’s ownership of the bank drop close to 12.5%.

The State is seeking to further cut its shareholding in AIB by 5%.

Finance Minister Paschal Donohoe said he intends to cut Government shareholding by way of an accelerated bookbuild (ABB) transaction.

Once concluded, the sale would see the State’s ownership of the bank drop close to 12.5%.

The placing is expected to comprise of approximately 116m of AIB ordinary shares.

“As announced today, the State has launched a further sell down of its shareholding in AIB by way of an accelerated bookbuild transaction,” said Mr Donohoe.

“This ABB transaction represents our sixth such disposal in AIB and will reduce the State’s shareholding in the bank by a further 5%. Following the conclusion of this transaction, the State’s remaining shareholding in AIB will be c12.5%.

“We will continue to assess additional opportunities for share sales as they arise.”

During the bank bailouts following the financial crisis, the State invested about €21bn in AIB to rescue it.

AIB CEO Colin Hunt told Bloomberg in October that Ireland could finish selling its stake in the lender this year.

Proceeds generated from the latest phase of the AIB trading plan amount to approximately €628.2m.

The State’s shareholding of AIB has decreased significantly in the last two years, falling from 71% at the beginning of 2022. In total, approximately €2.1bn has been raised from the AIB trading plan since it became operational in January 2022.