The Department of Treasury priced a secondary public offering of 1,218,522 warrants to purchase common stock of M&T Bank Corporation, at $26.50 per warrant on Wednesday.

The net proceeds to Treasury from the offering are expected to be about $31.8 million. The offering was priced through a modified Dutch auction and the closing is expected to be on Dec. 17.

Deutsche Bank Securities (DB) is the sole book-running manager for this offering. 

The warrants were offered pursuant to an effective “sell registration statement” filed by M&T Bank with the Securities and Exchange Commission.

The 10-year warrants were granted to the government in 2008 as part of the Treasury’s $600 million perfect stock investment in the company under the Troubled Assets Relief Program.

Giving effect to the Treasury’s American International Group (AIG) common stock offering announced this week, more than 90% of the $418 billion funds disbursed for TARP have already been recovered to date through repayments and other income.