The Irish government on Tuesday announced plans to cut its stake in AIB Group PLC by a further 5.0%, taking its holding below 50% for the time since the bank was bailed out in 2009 in the wake of the financial crisis.

The disposal will be by way of a placing to institutional investors at a price determined by an accelerated book build process.

The placing is expected to total 132 million shares, around 5.0% of AIB’s share capital, reducing the size of the Irish state’s holding to 46.9% from 51.9%.

Proceeds from this sale are expected to total around €412 million, taking the total raised from the AIB trading plan since it became operational in January 2022 to €698 million.

The government has pledged not to sell further shares in the company for the period of 90 calendar days following the completion of the placing.

Minister for Finance Michael McGrath also agreed to extend the AIB share trading plan for a further six-month term to January 23, 2024.

BofA Securities, Goldman Sachs International and Goodbody Stockbrokers UC have been appointed to act as joint bookrunners in connection with the placing.

Shares in AIB closed up 1.2% at 329.00 pence each in London on Tuesday. It has a market capitalisation of €10.01 billion.

The Irish government stepped in to buy a stake in the company in 2009 amid the global financial crisis. The state pumped a total of €29.4 billion into AIB, Bank of Ireland Group PLC, and Permanent TSB Group Holdings PLC over 2009 to 2011.

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