AIB has bought back another big tranche of its shares held by the State, which reduces the State's stake in the bank to about 32.6%.
AIB's off-market purchase is worth a total consideration of €998,999,996.
The deal saw 198,233,951 ordinary shares owned by the Minister for Finance bought at a price of €5.0395 each - a slight premium on AIB's closing price yesterday.
The shares represent about 7.6% of the bank's issued share capital.
The buyback contract between AIB and the Minister was approved by the shareholders of AIB at its extraordinary general meeting yesterday.
After today's sale, the Minister will own approximately 32.6% of AIB's issued share capital, down from over 70% at the start of 2022.
"We are very pleased to return c. €1 billion to the State after reaching agreement with the Minister for Finance to buy back a further tranche of AIB shares, reducing the State's shareholding to 32.6%," AIB's chief executive Colin Hunt said.
"This transaction is another important milestone in the process of repaying the taxpayer for their support, enhancing liquidity in AIB shares and normalising the share register," the CEO said.
"Having reported a very strong first quarter performance, we are well-positioned to generate sustainable profits, deliver attractive shareholder returns and support our 3.3 million customers and the wider economy," he added.
The Minister for Finance Michael McGrath said the completion of this latest share buyback transaction with AIB is another positive step for both the company and the State.
He said that when combined with the latest annual dividend of about €273m to be received next week, the total amount returned to the State from its investment in AIB will reach about €14.9 billion.
"The proceeds from this transaction will be held within the Irish Strategic Investment Fund while I examine how best to use them for the benefit of the State," the Minister said.
Mr McGrath 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 32.6% today.
"While the State remains the largest 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 c. 67.4%," he added.
The Finance Minster said it continues to be 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 support the banking sector should be recovered and put to more productive use.
"The State still retains a valuable shareholding in AIB and I will continue to assess additional opportunities for share sales as they arise," he added.
