The Government has sold a 5% stake in AIB Group, lowering its holding in one of the country's two remaining partly state-owned lenders to 41% and raising €515m.
The accelerated placement at €3.93 per share compared with a price of €3.64 per share the last time the Government sold a similar sized chunk of its shares in June.
The Department of Finance said the €515m will be returned to the Ireland Strategic Investment Fund - the state's enterprise development fund - pending further consideration by the Finance Minister Michael McGrath.
Today's sale brings to about €13.6 billion the total amount returned to the State to date from its investment in AIB.
"This transaction represents our fourth such disposal in AIB and with each one we have achieved incremental improvements on the placing price, with this latest transaction achieving a price which was 8% higher than what was achieved in the previous transaction in June," Michael McGrath said in a statement today.
"This transaction was once again well received with significant demand from a large number of international institutional investors," he added.
The Minister said that significant progress has been made in reducing the State's shareholding in AIB from about 71% at the beginning of 2022 to about 40.8% today.
"While the State remains a significant shareholder in AIB, this is another important step in normalising the relationship between the State and AIB with the free float in the bank now increasing to 59.2%," he added.
Mr McGrath said the State's remaining shareholding in AIB is worth approximately €4.3 billion.
"Following the applicable lock-up period, we will again assess additional opportunities for share sales as they arise as it continues to be this Government's belief that banking in the main is an activity that should be provided by the private sector," he stated.
Commenting on the share sale, AIB group chief executive Colin Hunt said the bank very much welcomed the decision and subsequent transaction undertaken by the Minister for Finance which has led to a further divestment of the State's shareholding in AIB Group to about 41%.
"It is another important development in the process of returning the State's investment in the Group and a normalisation of the share register. AIB owes the Irish taxpayer an immense debt of gratitude for its support during the financial crisis," Mr Hunt said.
"As we conclude the successful delivery of our three year strategy, we are now preparing for the next phase of the group's development and remain committed to the creation of value for all our stakeholders and delivery of sustainable returns," he added.
Last week, AIB lifted its full year income guidance for the third time this year after a higher interest rate environment contributed to a "very strong" third quarter that it expects to continue in the final three months of 2023.
Shares in the bank moved higher in Dublin trade today.
