Move reflects Agency’s very strong cash flow – Chairman

21 September 2011 – The National Asset Management Agency (NAMA) has announced that it has redeemed a further €500m of NAMA Bonds (Senior Securities) today. This is the third repayment of bonds so far this year and brings the total of NAMA bonds redeemed to some €1.25 billion (€500m redeemed in May and €250m redeemed in March).

In addition to repayments of €299m in advances made by the Minister for Finance (repayments made in October 2010 and end February 2011), the news means that NAMA has reduced its indebtedness by €1.55 billion in approximately 18 months. 

Speaking on the decision, Frank Daly, Chairman of NAMA, said that “further bond repayments are likely before the end of this year and our ability to make these repayments reflects the Agency’s very strong cash flow position.” 

Editors Note:

NAMA issued some €30.5 billion in NAMA Bonds to finance the acquisition of loans with a nominal value of some €72.3 billion from the five Participating Institutions (banks). This represented a discount of 58% on the face value of the loans held by the banks. The banks could then use the NAMA bonds as collateral in order to raise cash from the ECB. In repaying the bonds NAMA effectively pays down its ultimate debt to the banks for the acquisition of their loans. Ultimately NAMA intends to buy back all outstanding NAMA bonds over the lifetime of the project and any remaining cash held by NAMA will represent its profit after other expenses are taken care of.

Back