The Minister for Finance is to sell another 5% of the State's stake in AIB, bringing its remaining shareholding in the company from 45.8% to around 40.8%.
The stake will be sold through an institutional placing, with the price to be set by an accelerated"book building" process.
Rothschild & Co is acting as independent financial adviser and William Fry and Allen & Overy are acting as legal counsel to the Department of Finance in connection with the sale.Back in June, the State cut its stake in AIB to below 50% for the first time since effectively nationalising the bank more than a decade ago.
Profits at AIB, Bank of Ireland and PTSB have all shot up in the last year due to higher interest rates and the decisions by KBC and NatWest to shut their Irish businesses.