The National Asset Management Agency (NAMA) has announced that it is repaying an additional €600m of its Senior Debt today.
This brings total Senior Debt redemptions by the Agency to €7.6bn so far in 2014 and means that NAMA has now redeemed a total of €15.1bn in Senior Debt since inception.
This represents 50% of the €30.2bn total Senior Debt issued by NAMA to acquire loans from Participating Institutions.
The latest redemption was announced by NAMA Chief Executive Brendan McDonagh during an appearance at the Oireachtas Joint Finance Committee in Dublin today.
Mr McDonagh said: “This is a notable milestone for NAMA and one that has been achieved far earlier than anyone would have anticipated when the Agency began its work.”
”It shows the significant progress NAMA has made in maximising the amount recovered for the taxpayer and eliminating a €30.2bn contingent liability of the State.”
Mr McDonagh said the 50% target reached today had originally been set for 2016. The Agency now plans to redeem a total of 80% of its Senior Debt by 2016.
“Achieving this 80% target will require a substantial volume of NAMA loan and asset disposals in Ireland as well as Britain and elsewhere; for the most part, sales will involve commercial assets (offices, retail, hotel and leisure and industrial assets) or loans secured by commercial assets,” he said.
NAMA has also announced today that it is redeeming the last tranche of €134m of senior bonds that were issued to the Central Bank to acquire a floating charge over IBRC assets. This charge was acquired by NAMA in February 2013 as part of the arrangements governing the Special Liquidation of IBRC.
“This means that all of the €12.9bn in senior bonds that we issued in February 2013 as part of the IBRC liquidation process has now been fully redeemed,” said Mr McDonagh.