NAMA Bonds

Thursday, 9 May 2013

Questions (47)

Gerry Adams

Question:

47. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No.77 of 24 April 2013, if he will confirm that the National Asset Management Agency issued senior bonds totalling €12.928 billion to purchase the CBI’s remaining lending to the Irish Bank Resolution Corporation under the Facility Deed; if he will further confirm the total nominal amount of interest NAMA will pay to the Central Bank of Ireland for these bonds, assuming no redemption is made on these bonds in the next 12 months; if he will confirm whether the interest payments made on these bonds are pure profit or whether there is in fact an income cost for the Central Bank of Ireland holding these NAMA bonds; and if he will make a statement on the matter. [21919/13]

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Written answers

Minister for Finance

I am advised that NAMA issued senior bonds totalling €12.928 billion as consideration for the Deed of Assignment and Transfer between CBI and NAMA and National Asset Resolution Ltd. Over the next 12 months, assuming current interest rate expectations and no redemptions on these bonds, two coupon payments, totalling approximately €37m, are expected to be paid to the CBI. The Central Bank does not comment on individual investment holdings. As NAMA bonds are managed together with the Bank’s other investment assets, any positive investment return at year end, after costs of funding are taken into account, will be the product of the Bank’s investment portfolio in aggregate and not individual investments in isolation.