Minister Donohoe welcomes completion of €390 million AIB Warrants transaction
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From: Department of Finance
- Published on: 31 October 2025
- Last updated on: 31 October 2025
The Minister for Finance, Paschal Donohoe, today welcomes the completion of what will be the final transaction with AIB Group Plc (“AIB” or the “Company”). The transaction confirms the cancellation by the Minister for Finance of c. 271 million warrants (the “Warrants”) in AIB representing c. 12.7% of AIB’s total issued share capital (the “Transaction”), for a consideration of €390m.
The Minister had the right to exercise the Warrants by paying to AIB in cash, the exercise price (€6.752) for the outstanding warrants. In line with Government policy for the State to not be a long-term investor in banks, the Minister has agreed to cancel the AIB Warrants which were issued to the Minister as part of the AIB IPO in 2017.
In welcoming the completion of this transaction, Minister Donohoe commented:
“The completion of this Warrants cancellation transaction with AIB is a very important step for both the Company and the State. It is the final transaction with AIB and results in a further €390m recovered from our investment in the Company.
“When combined with the c. €19.8bn already returned to the State, the total amount returned from our investment in AIB will reach €20.2bn. The proceeds from this transaction will be held within the Exchequer and will ultimately be used to benefit the State.”
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.
Ends
Notes to Editors:
- As part of the IPO in June 2017, it was negotiated that AIB would issue the State with Warrants as a means of hedging against a scenario in which the share price increased significantly post IPO. These Warrants allowed us to buy back a stake in the bank if the share price went above a €6.752 Exercise Price. This would be a material cash outlay for the State given the Exercise Price and the number of Warrants issued. In line with Government policy for the State to not be a long-term investor in banks, the Minister instead decided to cancel the AIB Warrants, for a consideration of €390m.
Background Note
- A total of €29.4bn was invested in AIB, BOI and PTSB over the period 2009 to 2011.
- To date, c. €29.7bn has been recovered in cash by way of disposals, investment income and liability guarantee fees, and the AIB Warrants transaction.
- The State has fully disposed of its investment in Bank of Ireland and AIB, now including cancellation of the Warrants issued by AIB.
- The cancellation of the Warrants amounts to €390m.
- The remaining PTSB investment is currently valued at c. €0.9bn.
- This means we are currently €1.3bn above breakeven on our €29.4bn investment in the domestic banks.