The State is to sell another 5% of its stake in AIB.
In a statement, the Minister for Finance said the disposal of the shares will be done through a placement to institutional investors.
This will be done by way of an accelerated bookbuild transaction, where a company offers shares for purchase during a short window.
Following the transaction, the State's shareholding in the bank will fall from 17.5% to 12.5%.
The State plans to sell 116 million shares, as it moves to potentially offload the last of its holding in the bank this year.
"As announced today, the State has launched a further sell down of its shareholding in AIB by way of an accelerated bookbuild transaction," Minister for Finance Paschal Donohoe said in a statement.
"This ABB transaction represents our sixth such disposal in AIB and will reduce the State's shareholding in the bank by a further 5%," he added.
Minister Donohoe said he will continue to assess additional opportunities for share sales "as they arise".
