Nama to beat its 2020 target for €32bn debt

Nama is hoping to have nearly half of its senior debt of up to €15bn paid off by the end of this year, adding that it should comfortably pay off its entire €32bn debt ahead of its 2020 deadline, while also achieving a surplus for the taxpayer.

The agency announced plans yesterday to redeem €3bn worth of senior bonds within the next two weeks, with a similar amount targeted before end 2014.

The pending €3bn tranche will bring to 35% (€10.5bn) the amount of Nama’s total senior debt paid off; with almost 50% set to be done by the end of this year (including the €7.5bn which had been redeemed by the end of last year). Nama is also set to make a coupon payment worth €84m on its €1.6bn of subordinated debt.

Speaking at yesterday’s Institute of Directors spring luncheon in Dublin, the agency’s chairman, Frank Daly, said the pace of asset disposal was being increased to take advantage of increased investor interest in Ireland. The coupon payment plan provides “a strong signal” of Nama’s confidence in its financial outlook.

The agency also plans to offer packaged property portfolios, mainly comprising Irish-based assets, with a minimum value of €250m in each quarter of this year.

Those will be in addition to its existing schedule of sales and in addition to any loan portfolios which may be offered, separately, to the market.

“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 [real estate investment trusts], and thus help to sustain the positive momentum in the market,” Mr Daly said.

Nama is also seeking expressions of interest “from credible counter-parties” wishing to invest with it in order to develop potential joint venture opportunities that may emerge in Ireland.

He said REITs, in particular, are interested in Nama’s assets, adding that the strong investor sentiment towards Ireland shows no sign of slowing down and that “it’s a good market, and we should take every opportunity to avail of that”.

Mr Daly said that a clearer picture of how much of the remaining IBRC loan book that is likely to come to Nama will be known after the close of the sale of €8.5bn of IBRC’s Irish commercial property loans.