merrion street

Officials working on behalf of the Minister for Finance, Michael Noonan T.D. continue preparation for a future sale of some of the State’s shareholding in AIB.
The Department of Finance has commenced a competition to appoint investment banks as ‘Global Coordinators’ as part of a banking syndicate to assist in a potential future Initial Public Offering (IPO) of AIB. The Department expects to be in a position to announce the successful investment banks in early 2017.
The selected investment banks will assist the State with early stage preparations for an IPO. The Global Coordinators selected will be appointed for an 18 month period providing the State optionality through 2017 and well into 2018.
It is important to note that the appointment of Global Coordinators does not signal any intention or obligation for the Minister for Finance to proceed with an IPO within any particular timeframe and any decision to proceed with a transaction will be subject to Government approval and market conditions. Indeed the 18 month period of the contract is extendable at the option of the Minister.
To undertake an IPO it is also necessary to appoint a wider investment banking syndicate and that will be appointed at a future date should a decision be taken to move preparations forward to the next stage.
Commenting on the competition launch, Minister for Finance, Michael Noonan T.D. said:
“My officials have commenced a competition process to procure Joint Global Coordinators to enable a potential Initial Public Offering of shares in AIB to the market. While there is no fixed timetable for a sale at this time, given the long lead times involved in such a process this appointment is a necessary next step in order to provide the State with the option to sell some of the State’s shareholding in AIB during 2017 or indeed early 2018.”
“Such a sale is provided for in the Programme for a Partnership Government and the ultimate decision will be subject to a range of factors including prevailing market conditions but the overriding consideration will be whether any transaction is likely to maximise the return for the State.”


Notes to Editors
A banking syndicate is a group of investment banks who are appointed to structure, plan and execute an IPO on behalf of a selling shareholder, in this case the sale of the State’s shares in AIB.
A strong banking syndicate is critical to the successful design and execution of an IPO, building investor interest in the shares and ultimately maximising value for the selling shareholder.
An open procurement procedure was undertaken in October 2014 and financial advisory panels were constituted at that time. The Global Coordinator appointments will be made following a tender competition involving all of the members of the Department of Finance's capital markets financial distribution services advisory panel (panel 3).