AIB to return EU390 million to Irish state via warrant cancellation

AIB Group PLC on Friday said it has agreed to cancel subscription warrants held by Ireland’s finance minister, reflecting a €390 million payment to the Irish state.

The Dublin-based bank will cancel 271.2 million warrants, granted in 2017, which gave the minister the right to subscribe for shares ‘at a specified price.’ A deed effecting the cancellation was signed on Thursday, AIB said.

This follows the bank’s return to private ownership back in June, when the Irish government sold its last shares in AIB, which was bailed out by taxpayers during the 2008 financial crisis.

The warrant cancellation brings total proceeds returned to the state to €21 billion, including €650 million in levies and fees, AIB said.

The bank expects the latest payment to reduce its fully-loaded capital equity tier 1 ratio to around 15.7% from 16.4%, based on AIB’s June 30 capital position. The ratio estimate excludes profits from the first half of 2025, pending a final decision on the year-end payout.

AIB shares rose 0.9% to 696.00 pence each late Friday morning in London. In Dublin, its stock was up 0.1% at €7.88.

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