Nama comes in well ahead of target on senior bonds

Nama has redeemed half of the senior bonds it issued, putting it two years ahead of schedule.

Nama comes in well ahead of target on senior bonds

According to its 2014 end-of-year statement, the National Asset Management Agency (Nama) redeemed €16.6bn of its senior bonds by the end of last year, which is 55% of all senior bonds.

The original target was to redeem half of all Nama’s senior bonds by the end of 2016.

Moreover, it generated €8.6bn in cash last year, which brings the total cash generated since its inception to €23.7bn.

The agency, which was set up in 2009, paid €30.2bn in senior bonds for roughly €72bn of development loans which were sitting on the balance sheets of the domestic banks.

It has been helped by a robust recovery in the Irish property market over the past two years, particularly in Dublin.

Nama recorded €7.8bn loan and asset sales in 2014, which brings the total asset sales to date to €18.7bn.

Pent-up demand for new houses, combined with a chronic shortage in housing stock, have been the main factors that have caused a sharp increase in property prices.

Nama is now involved in the planning and development of a number of projects.

The agency said the 22 hectares that form the Strategic Development Zone in the Dublin docklands have the potential for the creation of 3.4m square feet of commercial space and 1,848 apartments over the next five to seven years.

Moreover, the agency has committed to complete 4,500 new residential units in the greater Dublin region by the end of 2016.

So far, Nama has approved a total of €3.2bn to debtors and receivers, for the completion of construction projects.

Of this, €1.6bn was for projects in Ireland and €1bn of this has already been drawn down.

The agency has delivered 1,000 units so far for social housing and it expects to deliver another 1,000 units in 2015.

“2014 was a tremendous year in terms of cashflow generation and accelerated debt paydown and in terms of Nama making a significant contribution to the delivery of social housing, private housing and the Dublin Docklands SDZ and to employment preservation in trading businesses,” said Nama chairman Frank Daly and its chief executive, Brendan McDonagh, in a statement.

“We look forward with continued confidence to delivering on Nama’s challenging mandate in 2015,” they added.

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