Minister for Finance Paschal Donohoe has confirmed the completion of a €390 million transaction with AIB Group Plc, marking the final step in the State’s divestment from the bank and bringing total returns from the investment to €20.2 billion.
Final Step in State’s Exit from AIB
On 31 October 2025, Minister Donohoe announced the cancellation of approximately 271 million warrants in AIB—representing 12.7% of the bank’s issued share capital—for a consideration of €390 million. These warrants were originally issued to the State during AIB’s 2017 IPO as a hedge against post-IPO share price increases.
Rather than exercising the warrants at the agreed €6.752 per share, which would have required a substantial cash outlay, the Minister opted to cancel them in line with the Government’s policy to avoid long-term ownership in domestic banks.
Total Returns Reach €20.2 Billion
The transaction brings the total amount recovered from the State’s investment in AIB to €20.2 billion, including approximately €19.8 billion previously returned through disposals and dividends.
Combined with returns from Bank of Ireland and Permanent TSB, the State has now recovered €29.7 billion from its original €29.4 billion investment made during the 2009–2011 banking crisis. The remaining stake in Permanent TSB is currently valued at €0.9 billion, placing the State €1.3 billion above breakeven.
Minister’s Statement
Minister Donohoe described the transaction as “a very important step for both the Company and the State,” emphasizing that the proceeds will be held within the Exchequer and used to benefit the public.
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP.
Conclusion
The cancellation of AIB warrants for €390 million marks the final chapter in the State’s financial relationship with AIB, delivering strong returns and reinforcing Ireland’s commitment to prudent fiscal management and limited state involvement in the banking sector.
Sources: Department of Finance Ireland; Irish Times; RTÉ News.
