Minister for Finance Michael McGrath has sold another 5% of the State's stake in AIB, which sees the bank exiting majority ownership for the first time since the financial crisis over a decade ago.
The stake was sold through an institutional placing, with the price set by an accelerated "book building" process.
This is a method of offering shares for sale to the market in a short time period of one to two days, with little or no marketing.
The sale sees the State's shareholding in the bank reduce from 51.9% to approximately 46.9%.
The shares were sold at a price of €3.64 per share which will generate €480.5m for the Exchequer. This brings to about €13 billion the total amount returned to the State to date from its investment in AIB.
Mr McGrath also announced that he has agreed to extend the AIB share trading plan for a further six-month term.
"Following the extension, which will become operational following the expiration of the applicable lock-up, the trading plan will now terminate no later than 23 January 2024," Mr McGrath said.
He added that no more than 15% of the expected aggregate total trading volume in the bank would be sold over that period.
AIB Group chief executive Colin Hunt said the stake sale marked another important development in the process of returning the State's investment in the bank and a normalisation of its share register.
"Today also marks a significant milestone for the group as we return to majority private ownership. AIB owes the Irish taxpayer an immense debt of gratitude for its support during the financial crisis," he said.
"We remain focused on our strategy to grow and strengthen the group to ensure we continue to support our customers and generate sustainable returns for all our shareholders," he added.
Mr McGrath said the price achieved on the latest AIB stake sale was about. 23% higher than what was achieved in its previous transaction in AIB last November while also achieving a lower discount.
"The transaction was well received with significant demand from a large number of international institutional investors," Michael McGrath said.
"This disposal of shares is consistent with the Government's belief that banking in the main is an activity that should be provided by the private sector, and that taxpayer funds which were used to rescue the banks should be recovered and used for the benefit of the people of Ireland," he added.
He also said that while the Relationship Framework which governs the relationship between the State and AIB remains in place, the reduction in the State’s shareholding in AIB to below 50% is a significant milestone on the path to normalising this relationship.
"The receipts from previous sales of bank holdings have been remitted to the Exchequer Central Fund. I will be examining how best to use the proceeds in this instance taking in to account the mandate of the Ireland Strategic Investment Fund," Mr McGrath said.
"We have made good progress in reducing our shareholding in AIB through various mechanisms. The State retains a significant shareholding of about 47% in AIB worth approximately €4.7 billion at the current price and we will continue to assess additional opportunities for share sales as they arise," he added.
Last month in its first sale of shares since 2015 in the third surviving retail bank Permanent TSB, the State lowered its stake to 57%.
Shares in AIB were lower in Dublin trade today.
