NAMA announces €3 billion Senior Bond redemption

National Asset Management Agency (NAMA) Chairman, Mr. Frank Daly, has today said that NAMA will redeem €3 billion in Senior Bonds within the next two weeks and expects to redeem a similar amount before the end of 2014, assuming that asset and loan sales currently in the pipeline can be completed satisfactorily.

The NAMA Chairman said that NAMA hopes to be in a position whereby close to 50% (€15 billion) of its senior debt of €30.2 billion will be redeemed by year-end. This includes the €7.5 billion which had been redeemed by the end of 2013. 

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Addressing the Institute of Directors Spring Lunch in Dublin today, the NAMA Chairman also confirmed that the Agency will, for the first time, pay a coupon on the subordinated debt issued as part (5%) of the consideration for its acquired loans. Total subordinated debt issued to the participating institutions was €1.6 billion and the coupon payment will be €84 million. Mr. Daly said that payment of the coupon provides a strong signal of NAMA’s confidence in its financial outlook and that it is also positive in its implications for bank capital.

Mr Daly also outlined NAMA plans to offer packaged property portfolios, predominantly comprising Irish assets and with a minimum value of €250 million, in each quarter of 2014, in addition to existing scheduled sales and in addition to any loan portfolios that may be offered to the market.

The NAMA Chairman said:

“I am pleased to be able to confirm today then that we will redeem €3 billion in Senior Bonds within the next two weeks. That means that we will have redeemed a total of €10.5 billion representing just about 35% of our senior debt”.

Commenting on NAMA’s plans to help sustain positive momentum in the Irish real estate markets, the NAMA Chairman said:

“We want to have a pipeline of large portfolios of mainly Irish property assets available for sale to the market and, with that in mind, we are now committing that, each quarter, packaged transactions of properties with a minimum value of €250m will be offered for sale. That’s a minimum – in many cases, the packages will be much larger than that but essentially we aim to provide certainty about regular asset flows which will provide clarity to potential investors, including international investors and REITs, and thus help to sustain the positive momentum in the market. I should mention that this will be in addition to the €1.5 billion of property assets which are currently for sale through our debtors and receivers and will be in addition also to any loan portfolios that may be offered to the market.”

The NAMA Chairman also announced that NAMA is seeking expressions of interest from credible counterparties wishing to invest with NAMA to develop potential joint venture opportunities that may emerge in Ireland in the future. Further details are available on NAMA’s website