It is important to clarify that a “discount of 4.5%” is not being applied to the IBRC loan books. The Special Liquidators have been tasked with obtaining an independent valuation of the loan assets of IBRC. The Special liquidators have appointed independent professional advisors who have employed standard valuation methodologies appropriate to each class of asset of IBRC to determine a valuation price. In arriving at the valuation the independent advisers have been advised to apply a discount rate of 4.5% in determining the present value of future cash flows of the asset in the case where a discounted cash flow valuation methodology is employed. Further, a discount of 2.32% will be applied to all loan asset valuations to take into account security and title issues associated with loan assets, to arrive at the Valuation Price.
Following that independent valuation process, the Special Liquidators will sell the assets of IBRC (which are subject to the floating charge) in an open and transparent process at or above their independent valuation and failing that, the Special Liquidators will sell the assets to NAMA at their valuation price.
I do not intend on providing any further instructions or directions to the Special Liquidators in relation to the valuation of the assets of IBRC.
