This move involved the sale of shares to institutional investors through an accelerated book-building process. Credit: Piotr Swat/Shutterstock.

The Irish Government has pared its stake in AIB Group from 17.5% to approximately 12.5% in its push towards privatisation of the bank, which was bailed out during the financial crisis.

This move involved the sale of shares to institutional investors through an accelerated book-building process.

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Ireland Minister for Finance Paschal Donohoe has announced the sale, which saw the divestment of 116 million ordinary shares, equating to about 5% of the company’s issued ordinary capital, at €5.60 apiece.

The gross proceeds of the divestment stood at €652.1m.

This deal secured a price 14% higher than the one achieved in the previous AIB sale last June, according to euronews.

This capital will be added to the Ireland Strategic Investment Fund.

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BNP Paribas, BofA Securities Europe, Goldman Sachs International, and Goodbody Stockbrokers are joint bookrunners for the transaction.

Moreover, N.M. Rothschild & Sons is serving as the independent financial adviser, while William Fry and Allen Overy Shearman Sterling are providing legal counsel to the Department of Finance.

Additionally, the Finance Minister has agreed not to sell any additional shares in the company for 90 days post-placement without the consent of the joint bookrunners.

“It is now a realistic target that the state could exit its position in AIB later this year should market conditions allow,” Donohoe noted.

AIB Group CEO Colin Hunt stated: “This well-supported transaction is another important milestone in the process of returning the State’s investment in the Group and a normalisation of the share register.

“It will return a further c. €652m to Irish taxpayers to whom AIB is deeply grateful, for their support during the financial crisis. This brings the total proceeds returned to the State to c. €18bn.”