State receives €390m from final transaction with AIB

AIB returned to full private ownership in June after once being 71% controlled by the State

Fri, 31 Oct, 2025 - 07:20

Emer Walsh

Almost €400m has been returned to the State by AIB following the cancellation of more than 271m warrants held by finance minister Paschal Donohoe.

The warrants gave the minister the right to subscribe for ordinary shares in AIB at a specified price, and were originally granted in July 2017.

The exercise price for the outstanding warrants was €6.752, with their cancellation resulting in a cash payment to the State of €390m.

A deed of warrant cancellation between AIB and the Minister was signed on October 30, to give effect to the warrant cancellation, AIB said.

This warrant cancellation follows the State’s exit from AIB’s share register in June 2025, marking the return of the Company to full private ownership. At its height, the State held a 71% share in AIB.

During the bank bailouts in the aftermath of the financial crisis, the State invested about €21bn in AIB to rescue it. Billions of taxpayers' money was also injected into Bank of Ireland and PTSB, as well as to cover the costs entailed by the collapse of Anglo Irish and Irish Nationwide.

The Government sold down its last remaining small shareholding in Bank of Ireland in 2022, and still holds a 57% stake in PTSB, which announced the commencement of a formal sale process on Thursday.

Speaking on the transaction, minister for finance Paschal Donohoe said: “The completion of this warrants cancellation transaction with AIB is a very important step for both the company and the State. It is the final transaction with AIB and results in a further €390m recovered from our investment in the company.

“When combined with the €19.8bn already returned to the State, the total amount returned from our investment in AIB will reach €20.2bn. The proceeds from this transaction will be held within the Exchequer and will ultimately be used to benefit the State.”