Decade long re-privatisation process for AIB begins with €1.6bn payment to the State

It expects to repay all of the €21bn invested in the bank by taxpayers during the financial crisis

The CEO of AIB, Bernard Byrne says he expects it will take between five to ten years for the State to sell its full 99.8% stake in the bank and to rebuild sufficient value to repay the full €21bn invested by taxpayers.

The first stage of that re-privatisation process should begin in the middle of 2016, with the Government selling an initial 25% stake as part of a new listing of AIB’s shares on the stock market.

Details of the government’s international and domestic advisers to the IPO process will be announced in coming days.

Following the AIB EGM yesterday, which formally approved the process, the State will be paid €1.6bn in cash today as some of its preference shares are redeemed.

Michael Noonan is expected to announce today that the proceeds to date from the re-privatisations of AIB and Permanent TSB, will reduce the State’s debt to GDP ratio to 92% in 2016.

Meanwhile, consumer groups and Labour TD John Lyons have criticised AIB for offering Irish soccer fans loans worth up to €30,000 to travel to Euro 2016 - the bank has defended its credit policy.