THE STATE HAS gained €500 million through the sale of shares back to AIB, with Finance Minister Jack Chambers calling the purchase ‘a further positive step’ on the way towards bring the bank back to full private ownership. 

The transaction sees AIB acquire €500m of its shares from the State by way of an off-market purchase at a final price of €5.445 per share, the Department of Finance said in a statement.

Chambers said the buyback “further normalises the relationship between both parties with the ultimate aim of getting the bank back into full private ownership”.  

“It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to support the banking sector should be recovered and put to more productive uses,” he said.

The State’s share in AIB has now come down to 22.04% from 24.88% as a result of the purchase, having been as high as 71% at the start of 2022.

“The price achieved on this transaction represents the highest AIB closing price since February 2018,” Chambers said. 

“The proceeds from this transaction will be held within the Irish Strategic Investment Fund while I examine how best to use them for the benefit of the State.”

Taoiseach Simon Harris recently said that he would like to see such proceeds committed to addressing the housing crisis.

The total amount returned to the State from its investment in AIB now stands at around €16.6bn. 

“The State remains the largest shareholder in AIB and I will continue to assess additional opportunities for share sales as they arise,” the minister said.