I wish to advise the Deputy that in its decision issued in July 2009, Eurostat (the statistical office of the European Union) ruled that special purpose vehicles, SPVs, which were majority owned by private companies would be regarded as being outside of the government sector if they met a number of conditions. Among the conditions were that the SPVs were of temporary duration and were established for the sole purpose of addressing the financial crisis.
In order to avail of this accounting treatment, NAMA established an investment holding company – National Asset Management Agency Investment D.A.C. – which is majority-owned by private investors. Some 51% of its shares are collectively owned by private companies and the remaining 49% are owned by NAMA. Under the shareholders’ agreement between NAMA and the Private Investors, NAMA exercises a veto over decisions taken by the company. Eurostat gave its approval to this structure in October 2009.
The total issued share capital of National Asset Management Agency Investment D.A.C is €100 million, of which €51 million (51 million B Ordinary shares of €0.10 each and Share Premium of €45.9 million) 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
|
The current shareholders are as follows:
|
Shareholder
|
Share Count
|
% Share Count
|
|
BNY Custodial Nominees (Ireland) Limited
|
17,000,000
|
17%
|
|
New Ireland Assurance Company PLC
|
17,000,000
|
17%
|
|
Arthur Michael Joseph Keeley
|
8,687,500
|
8.69%
|
|
The Church of Ireland Clergy Pensions Fund
|
3,250,000
|
3.25%
|
|
The Representative Church Body
|
2,500,000
|
2.50%
|
|
Geoffrey Ian Broomhead
|
1,312,500
|
1.30%
|
|
Simon Stuart Haworth
|
1,250,000
|
1.25%
|
Under the shareholders’ agreement, the maximum return which will be paid to the private investors by way of dividend is restricted to the ten-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 €13.5 million.
|
Year Dividend
Declared and 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
|
|
Total Dividends paid to private investors to Sept. 2017
|
|
13,552
|
I wish to advise the Deputy that it is not possible to predict future expected dividend, as it is based on the company’s performance in any given year. However, as outlined above, any dividend is restricted to the ten-year Irish Government Bond Yield applying at the date of the declaration of the dividend. Under European Commission approval, if the company meets its performance objectives and the 51% B shareholders are repaid, there is a provision for the private investors to be also repaid a further amount of up to 10% of their capital. Under the Articles of Association of National Asset Management Agency Investment D.A.C., any post-dissolution return to the private investors is capped at 10% of the equity interest.
