The Government has announced it is to sell an additional 5% of its shareholding in AIB.

The shares are to be sold in a placing to institutional investors.

The placing is expected to comprise €133.7 million shares and will reduce the government's stake in AIB from 68.5% to 63.5%.

The pricing and exact number of shares are expected to be announced 'in due course’ according to a statement from the Department of Finance this afternoon.

Last week, Minister for Finance Paschal Donohoe said he was extending AIB Group's share trading plan, which was first announced in December.