The Irish government has reduced its stake in AIB Group from 17.5% to 12.5% and may completely exit its position in the bank later this year, Finance Minister Paschal Donohoe announced today.
The reduction in shares was achieved through a placement to institutional investors, generating €652 million at a price of €5.60 per share, according to Mr. Donohoe’s statement.
Ireland effectively nationalized AIB in 2010, injecting €64 billion—nearly 40% of the country’s GDP at the time—into its banking sector following a severe property crash.
The Government spent €21 billion to bail out AIB, and to date, it has recouped €17.9 billion.
Since 2021, the Government has been gradually selling off shares in AIB following its 2017 IPO. It also sold its remaining shares in Bank of Ireland in 2022.
This latest sale marks the sixth such divestment by the State in AIB, and the proceeds will be directed to the Ireland Strategic Investment Fund, pending further review by the Finance Minister.
Mr. Donohoe highlighted that the transaction price was 14% higher than that achieved in the previous sale in June.
AIB Group CEO Colin Hunt welcomed the transaction, describing it as an important milestone in the process of reducing the State's involvement in the bank and normalizing its share register.
Mr. Hunt also noted that 2024 marks the first year of AIB's new strategic cycle, with significant progress made in its key areas of focus: Customer First, Greening the business, and Operational Efficiency.