Thursday, 12 July 2018

Questions (101)

Seán Fleming

Question:

101. Deputy Sean Fleming asked the Minister for Finance the persons or organisations that are the 51% owners of the NAMA group; the shareholding of each of these persons and organisations; the amount of dividend paid to each in each year to date since NAMA was established; the expected dividend that will be paid to them between now and the expected conclusion of NAMA activities; the amount of funding each of these invested in the NAMA group; if they will receive an additional 10% of their contributed capital sum at the dissolution; the amount provided by the private sector in the capital contribution to the establishment of the NAMA group which assisted in the NAMA liabilities not being on the State balance sheet; and if he will make a statement on the matter. [31733/18]

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Written answers (Question to Finance)

A ruling issued in July 2009 by Eurostat, the statistical office of the EU, outlined a number of conditions relating to Special Purpose Vehicles (SPVs) which were majority owned by private companies, in order for them to be considered outside the government sector. These conditions included that the SPVs were to be established for the sole purpose of addressing the financial crisis and were to be temporary entities.

In order to comply with these conditions, NAMA established an investment holding company, now known as National Asset Management Agency Investment D.A.C., which is majority owned by private investors. A total of 51% of its shares are collectively owned by private companies and the remaining 49% are owned by NAMA. However, under the shareholders’ agreement between NAMA and the private investors, NAMA exercises a veto over decisions taken by the company. This structure was presented to Eurostat which gave its approval in October 2009.

The total issued share capital of National Asset Management Agency Investment D.A.C. is €100m of which €51m (51m B Ordinary shares of €0.10 each and Share Premium of €45.9m) was invested by the Private Investors, each receiving an equal share of the 51 million B ordinary shares. The breakdown of share capital invested by the original Private Investors in 2010 was as follows:

Shareholder

Share Capital Invested

Irish Life Assurance PLC

17,000,000

New Ireland Assurance Company PLC

17,000,000

Percy Nominees Limited

17,000,000

As a result of subsequent transactions by the original shareholders, the current private shareholding is as follows:

Shareholder

Share Count

Share Count %

New Ireland Assurance Company PLC

17,000,000

17%

BNY Custodial Nominees (Ireland) Ltd

12,000,000

12%

The Representative Church Body

9,750,000

9.75%

The Church of Ireland Clergy Pensions Fund

7,250,000

7.25%

Nortrust Nominees Ltd

5,000,000

5%

Total

51,000,000

51%

Under the shareholders’ agreement, the maximum return which will be paid to the private investors by way of dividend is restricted to the 10 year Irish Government Bond Yield applying at the date of the declaration of the dividend. The following table sets out the dividend per share paid to Private Investors in each year to date since NAMA was established. The cumulative dividend paid to Private Investors to date is €14m.

Year Dividend Declared & Paid

Dividend per Share

Dividend Paid

€’000

2011

0.09987

5,093

2012

0.06778

3,457

2013

0.0424

2,162

2014

0.0302

1,540

2015

0.00757

386

2016

0.00719

367

2017

0.01072

547

2018

0.00891

454

Total Dividends paid to private investors to

June 2018

14,006

I wish to advise the Deputy that as a company’s dividend is based on the company’s performance in any given year, it is not possible to predict a future expected dividend. However, as outlined above, any dividend is restricted to the 10 year Irish Government Bond Yield applying at the date of the declaration of the dividend. Under the approval granted by the EU Commission, if the company meets its performance objectives and the 51% B shareholders are repaid, there is a provision for the private investors to be paid an additional amount of up to 10% of their capital capped at €5m. Any residual profit will be distributed back to the Minister for Finance, which NAMA currently estimates, subject to favourable market conditions prevailing, could be €3.5 billion.