Press Statement - NAMA redeems last remaining €1.064 billion of outstanding debt

02/03/2020

NAMA redeems last remaining €1.064 billion of outstanding debt

Subordinated Debt redemption completes the repayment of all €31.8 billion in debt issued by NAMA to acquire loans and leaves NAMA debt-free

 

  • The National Asset Management Agency (NAMA) has announced that it has redeemed the outstanding €1.064 billion of subordinated debt today, 2nd March 2020. 

 

  • This final transaction will complete the redemption of the €1.593 billion of subordinated debt originally issued by NAMA during 2010 and 2011. This subordinated debt accounted for 5% of the total amount of €31.8 billion paid for the loan portfolio acquired from each of the Participating Institutions. 

 

  • This redemption marks the achievement of another key objective for NAMA and is an important step which will enable the Agency to commence the transfer of the first €2 billion of its expected €4 billion surplus to the Exchequer later this year. 

 

  • Post this redemption and the final repayment of the €30.2 billion NAMA senior debt in October 2017 (three years ahead of schedule), NAMA has now fully repaid all €31.8 billion debt issued to acquire loans from the Participating Institutions. 

 

 

NAMA CEO Brendan McDonagh said:

“The full repayment of our subordinated debt represents another significant milestone for NAMA, particularly as it paves the way for the Agency to commence the transfer of the first €2 billion of its surplus to the Exchequer later this year. NAMA is now in a position to make a meaningful and tangible return of €4 billion to the State – a return that was not considered feasible a decade ago.”

 

Notes to Editor: 

  • NAMA completed the full redemption of the €30.2 billion of senior debt in October 2017. As this senior debt was government guaranteed, completing the redemption of this debt eliminated the associated contingent liability of the Irish State. 
  • NAMA subordinated debt comprised €1,593 million in Callable Perpetual Fixed Rate Bonds that were issued by NAMA as 5% consideration for the loan portfolio acquired from each of the Participating Institutions.
  • A total of €529 million of subordinated debt was repurchased during 2018, leaving an outstanding amount of €1.064 billion that was redeemed today
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