BOI to repay €1.8bn to State
Bank of Ireland is to repay €1.8bn of taxpayers' money to the state, it announced this morning.
Annoucing a capital package to repay some €1.837bn in preference shares bought by the Government in 2009 as part of the bailout, BOI said it would raise €537m through a new share issue and €1.3bn through a sale of the Govt shares to private investors.
"The Bank has mandated Credit Suisse Securities (Europe) Limited, J&E Davy (trading as Davy), Deutsche Bank AG and UBS Limited as Placing Agents in relation to the Placing," BOI said.
It means taxpayers will have made a profit on bailing out Bank of Ireland in 2009.
The move "enables the Bank to fully reimburse the State for its investment in the 2009 Prefs, repaying the related State aid and further reimbursing the Irish taxpayer for its investment in the Bank," BOI said in a statement.
The sale "represents a further step in the Bank’s recovery and the normalisation of its relationship with the State," it added.
