Ireland appoints Goldman Sachs to advise on AIB sale

(Corrects reference to contingent convertible instruments from preference shares in paragraph 3)

DUBLIN, Jan 12 (Reuters) - Ireland (Other OTC: IRLD - news) has appointed Goldman Sachs to advise on the sale of AIB, finance minister Michael Noonan wrote on Monday, as the state looks to recover all 21 billion euros ($24.9 billion) spent on rescuing the country's second-largest bank by assets.

Writing in Monday's Irish Times, Noonan also said that Ireland would "at a minimum" recoup the 29.4 billion euros used to bailout AIB, Bank of Ireland and Permanent TSB , echoing remarks on Nov 28, when he said that the state would make a profit on what was once known as the euro zone's costliest bank bailout programme.

Ireland increased its valuation of its AIB investment to 13.3 billion euros at the end of last year, including 1.6 billion euros of contingent capital instruments, up from 11.6 billion euros a year earlier.

"Much of the banking-related work in the Department of Finance this year will focus on AIB," Noonan wrote. "Officials within my department are working with AIB on reconfiguring the capital structure. Goldman Sachs International has been appointed to provide financial advice."

Ireland hopes to sell at least some of its stake in AIB and Permanent TSB this year. Permanent TSB must also raise money because it failed the European Central Bank's landmark stress tests in October. ($1 = 0.8434 euros) (Reporting by Laura Noonan; Editing by David Goodman)