Banking

State agrees €1 billion AIB share buyback

Transaction will see the state reduce its stake in the lender, which was acquired following a €21 billion crisis-era bailout, by a further 5 per cent

In March, a finance spokesperson said that reduction in the state’s share in AIB was a “significant milestone” towards normalising the relationship between the parties. Picture: Maura Hickey

The government has agreed in principle to AIB’s latest share buyback proposal, which will see nearly a billion of state-owned stock returned to the bank.

AIB will acquire €999 million of its shares from the state, with completion expected by way of an off-market purchase following the AIB annual general meeting (AGM) on May 2.

The transaction will see the state reduce its stake in the lender, which was acquired following a €21 billion crisis-era ...