AIB plans to return to the subordinated (junior) bond market to facilitate repayments, before the end of the year, of up to €2bn of the €3.5bn in preference shares held by the State on behalf of the taxpayer - according to Bloomberg.
The bank hasn’t been in a position to raise long-term debt finance through bond issues since the financial crash and the €21bn State bailout, which still leaves the taxpayer holding close to 100% of its share capital.
Holders of AIB junior bonds lost up to €5bn in haircuts between 2009 and 2011 as a result of the crash.
The Minister for Finance is expected to re-float up to 25% of AIB on the stock market in early 2016, when further outstanding bond debts to the Exchequer may also be paid.
Meanwhile, Ulster Bank has just reported operating profits of €157m for the three month period to the end of September, bringing profits this year to date to €337m.
The bank’s performance was boosted by stronger new business volumes, and the release of up to €80m reserves it had held against non-performing property loans.
