NAMA redeems a further €1.5bn of senior bonds
The National Asset Management Agency (NAMA) has redeemed €1.5bn of senior bonds, taking the total paid off so far to €6.25bn since the agency began making repayments in March 2011.
NAMA used €30.2bn of bonds to 'buy' its portfolio of loan assets from the main Irish banks in 2009 and 2010.
The bonds are redeemed as NAMA realises cash from the assets and funnels it back to the banks. From there it largely goes to help settle lenders' debts to the European Central Bank.
Under a schedule agreed with the Troika of European lenders and the International Monetary Fund (IMF), state-owned NAMA has committed to redeem €7.5bn of the bonds by the end of the year, and all of the original €30.2bn debt by 2020.
Last week, the chief executive of NAMA Brendan McDonagh said the possibility it will miss this year's redemption deadline is "a non issue" and that it remains on course to meet its full 2020 deadline.
However, that schedule excludes any impact from the acquisition later this year of what may well be billions of new loan assets that could be transferred into NAMA at the end of the liquidation of IBRC, the former Anglo Irish Bank.