State extends Bank of Ireland sell-down after raising €249m

business
State Extends Bank Of Ireland Sell-Down After Raising €249M State Extends Bank Of Ireland Sell-Down After Raising €249M
The Bank of Ireland sales is the first time the State has sold any of its Irish bank share holdings since 2017. Photo: Paul Faith/AFP via Getty
Share this article

Padraic Halpin, Reuters

The Government has extended the gradual sell down of its shares in Bank of Ireland to May 2022, having raised €249 million in the last three months by cutting its stake to 9.3 per cent from 13.9 per cent.

The Government announced in late June that it intended to cut its shareholding in a trading plan that was due to end in January. The Department of Finance said on Friday that it had sold the shares at an average price of €4.96.

Shares in Bank of Ireland, the country's largest bank by assets, closed at €5.15 on Thursday.

The State pumped €64 billion, or almost 40 per cent of annual economic output, into banks a decade ago after a property crash, with Bank of Ireland the only lender to avoid majority State ownership.

The Bank of Ireland sales is the first time the State has sold any of its Irish bank share holdings since 2017.

Advertisement

If the Government maintains its current pace of share sales it could exit Bank of Ireland entirely next year, a move that would make it the first of Ireland's bailed-out banks to fully return to private ownership.

"Given its success to date, I believe it is in the best interest of the taxpayer to extend the plan for a further period," Minister for Finance Paschal Donohoe said in a statement.

Citigroup will continue to act on behalf of the State in executing the share trading plan, the department said.

Read More

Want us to email you top stories each lunch time?

Download our Apps
© BreakingNews.ie 2022, developed by Square1 and powered by PublisherPlus.com