The government will be using funds from the National Pensions Reserve Fund Commission (NPRFC) for AIB’s core Tier 1 capital ratio, to ensure that the AIB meets its year-end capital requirements.
Under the agreement, the NPRFC’s stake will increase to 49.9%, and then rising to 92.8% upon completion of the sale of AIB’s Polish subsidiary to Santander, a Spanish banking group.
Ireland Finance Minister Brian Lenihan said the order allows the Minister to provide capital so as to ensure AIB meets its year-end capital requirement as set by the Central Bank, and this capital is essential to allow AIB to fulfil its role in supporting the Irish economy.
Under the directions of the court, AIB will have to cancel its listing of ordinary shares on the Main Securities Market of the Irish Stock Exchange and to apply for listing on the Enterprise Securities Market of the Irish Stock Exchange, to ensure that shareholders retain access to a public trading facility for their shares.
The court also directed AIB to cancel trading on the main market of the London Stock Exchange.
