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Written Answers - State Banking Sector

Thursday, 9 February 2012

Dáil Éireann Debate
Vol. 755 No. 1

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 64.  Deputy Michael McGrath Information on Michael McGrath Zoom on Michael McGrath  asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan  the value of senior and subordinated bonds outstanding in the covered institutions; and if he will make a statement on the matter. [7451/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan The information requested, as at 31 January 2012, has been supplied by the covered institutions as follows:

  €bn €bn €bn €bn €bn
Senior Unsecured (Unguaranteed) 4.64 2.60 1.40 0.80  
Senior Unsecured (Guaranteed) 6.47   2.68 4.53  
Senior Secured 4.60 15.20   2.71  
Total Senior bonds outstanding 15.71 17.80 4.08 8.04 45.63
Dated Subordinated Debt 0.12 0.30 0.15 0.02  
Undated Subordinated Debt 0.00 0.10 0.36 0.00  
Total Subordinated Debt Outstanding 0.12 0.40 0.51 0.02 1.06
Contingent Convertible Capital Instruments         3.00

There is currently c. €1.0bn of outstanding subordinated debt remaining in the Irish banks. This is split between — BoI (€0.4bn), AIB (€0.1bn) and IBRC (€0.5bn). Further details regarding the remaining amounts on these instruments are shown below:

IBRC has a tier one debt of c. €335m outstanding. On 21 January 2009, under the terms of the Anglo Irish Bank Corporation Act, 2009, ownership of the 300,000 Non-Cumulative Preference Shares in issue was transferred to the Minister for Finance. IBRC also has c. €140m of dated Tier two subordinated bonds, with the bank currently involved in a legal challenge with the owner of these notes.

BoI generated gains of c. €0.3bn from the repurchase of securitizations in December 2011 completing its remaining PCAR 2011 requirements, avoiding the need for a SLO. As a result the bank still has €0.4bn of subordinated debt left outstanding. Further LMEs on this remaining debt could occur if required in the future.

AIB has c. €0.1bn of outstanding subordinated debt. The owners of the notes chose not to participate in the LME exercises conducted over the summer. As a result of the SLO on these remaining bonds, the maturity date of the bonds has been extended to 2035 and the bank has discretion over whether to pay coupons on these instruments.

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