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'Highly unlikely' that NAMA will still be operating by 2020

The bad bank announced plans today for another multi-billion redemption of senior bonds.

Nama chairman Frank Daly
Nama chairman Frank Daly
Image: Gareth Chaney/Photocall Ireland

THE NATIONAL ASSET Management Agency (NAMA) has announced another multi-billion bond redemption, intended to take place in the coming weeks.

It follows the bad bank reaching its ‘first major milestone’ late last year, redeeming a total of €7.5bn worth of senior bonds.

€3bn worth of bonds, issued over the course of 2010 and 2011, will be redeemed within the next two weeks.

“Within two weeks we will have 35 per cent of our debt paid off,” Chairman Frank Daly told RTÉ’s News at One.

Nama aims to have redeemed just under 50 per cent of its €30.2bn senior bond debt by the end of the year.

Property portfolios

The bank also announced its intention to offer further property portfolios to the market, each with a minimum market value of €250m, issued each quarter this year, as well as an €84 million coupon payment.

“I think we have to be mindful of course that we’re not the only body that is actually deleveraging and putting property assets on the market,” Daly added.

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He also said that the organisation wouldn’t recommend the government stepping in to regulate this.

The bank’s chairman also said he believes that Nama will be closed before 2020, having repaid all senior and subordinated debt.

“It’s a question of doing the analysis,” he said, but that the bank’s progress could be ‘accelerated’.

It is highly unlikely that we will be around by 2020.

Daly added that the bank is “quite opportunistic” that a surplus will be delivered to the taxpayer, but was hesitant to put an exact figure on how much this will be.

Read: NAMA meets ‘major milestone’ with redemption of €500m in senior bonds >

More: No policy decision made yet on NAMA speeding up sale of assets, says Noonan >

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Nicky Ryan

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