NAMA chairman Frank Daly says the agency plans to redeem €6 billion of its senior debt by the end of the year
NAMA chairman Frank Daly has said he expects the agency will be wound up before its original finish date of 2020, and will also achieve a surplus for the taxpayer.
The National Asset Management Agency today announced a plan to redeem €3 billion in senior debt within the next two weeks, while property portfolios of €250m will also be offered for sale every quarter.
Mr Daly said the trend was “very positive” and its work can be accelerated.
NAMA intends to pay off half of its senior debt – €15 billion – by the end of the year and Mr Daly said the agency was stepping up the pace at which it sells off assets, to take advantage of a surge of investor interest in Ireland.
Mr Daly said that four years ago, no-one would have expected NAMA to be where it is today. “I think, as of today, it is highly unlikely that we will be around by 2020. I think we’ll have our job done,” Mr Daly stated.
“We will have the senior debt repaid. We will, I think, given the way things are going, will have the subordinated debt repaid. I’m also saying today that we are quite optimistic about now realising a surplus for the taxpayer on top of that. If I were here a year ago, I wouldn’t have been as confident about that surplus,” he added.
The NAMA chairman said that within two weeks, 35% of NAMA’s senior debt will be paid off, and 50% will be paid off by the end of the year.
Mr Daly said that he had no doubt that the €31.8 billion in senior and subordinated debt that NAMA acquired will be fully paid off, and that anything over that would be a gain for the Irish taxpayer.
The agency also said it will make a coupon payment of €84m on its subordinated debt for the first time.
NAMA plans to offer packaged property portfolios – made up of Irish assets and with a minimum value of 250,000 – every three months. This is in addition to existing planned sales and to any loan portfolios that may be offered to the market.
“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,” the NAMA chairman explained.
“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,” Mr Daly added.