State’s AIB stake falls below 31% as drip-feeding of shares continues

Holding in AIB has fallen from 71 per cent at the start of 2022

The Government’s stake in AIB has fallen below 31 per cent as it continued to drip feed stock into the market.

AIB disclosed on Tuesday that it has been informed by the Ireland Strategic Investment Fund (ISIF), which manages the holding on behalf of Minister for Finance Michael McGrath, has reduced its holding to 30.95 per cent from 31.98 per cent previously.

The State’s holding in AIB has fallen from 71 per cent at the start of 2022 through a three-pronged approach, including regular selling of shares in small lots, placing blocks of about 5 per cent of stock and participating in share buybacks by the bank.

The pace was accelerated in May as AIB repurchased and cancelled €1 billion of shares from the Government.

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The State has recovered about €15.1 billion from AIB since it received a €20.8 billion bailout during the financial crisis. It’s remaining holding is currently worth about €3.71 billion – leaving taxpayers about €2 billion under water on their investment on a cash-in, cash-out basis

Joe Brennan

Joe Brennan

Joe Brennan is Markets Correspondent of The Irish Times