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Finance Minister Michael Noonan today welcomed the successful completion of the sale of the entire amount of the State’s €1 billion holding of Contingent Capital Notes (CCN’s) in Bank of Ireland at a price of 101% of their par value plus accrued interest.

Watch the Minister's statement below...

The Minister stated:

This disposal is very positive as it will enable the Irish State to start reducing the level of indebtedness that was generated by the banking crisis.

Since making this €1 billion investment in Bank of Ireland in July 2011 the Irish taxpayer has received a generous return of 10% per annum on its money while this disposal will also generate a profit in the region of €10m.

The State’s investment in these instruments dates back to the 2011 PCAR exercise, and the successful exit from this position represents another step along the road to normalising the State’s relationship with the banking sector.

This transaction also reflects the progress being made in returning Ireland’s banks, and especially Bank of Ireland, to a position of strength which in turn benefits the State’s preference share and equity holdings in Bank of Ireland.

Today’s transaction builds on the positive momentum from yesterday’s NTMA bond issuance and last week’s Exchequer returns. All of these positive developments are thanks to the economic and structural reforms that have been taken by Ireland and the ongoing commitment of our EU partners to support and improve the well performing Irish Programme of Assistance.