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The Commission approved the emergency recapitalisation worth €1.5 billion that the Irish authorities intend to grant to Anglo Irish Bank.
The shares to be issued will qualify as core tier 1 capital and will produce a dividend of 10% payable annually, at the discretion of the bank and in priority to dividends on ordinary shares. Dividends on the shares are payable in cash, or (if the bank is not able to pay in cash) in ordinary shares on the basis of the average daily closing price over the previous 30 trading days.
The shares will carry 75% of the voting rights in Anglo Irish Bank. The bank can repurchase the shares at par during maximum five years. After that period, shares can be repurchased at 125% of par. No dividends on ordinary shares are allowed when no dividend on the shares to be issued is paid to the state.