Ireland Reduces AIB Stake, Raises €652 Million

The Irish government has sold another 5% of its stake in AIB, reducing its shareholding from 17.5% to 12.5% and raising €652 million from the sale at €5.60 per share. This move is a significant step towards fully exiting its crisis-era investment, with €17.9 billion recovered from the €20.8 billion bailout. Minister for Finance Paschal Donohoe suggested a full exit could be possible later this year, depending on market conditions. The transaction received high demand from international institutional investors, achieving a price 14% higher than the previous sale. The government plans to continue its gradual divestment strategy, potentially reducing its stake to zero by mid-year, as AIB is expected to buy back shares using surplus capital. This sale is part of a broader strategy to normalize the bank's share register and return value to taxpayers.