NAMA generated €900 million cash in 2020, exceeding its target according to an end-of-year review published by the agency today.
It expects to report a full-year profit for 2020 for the tenth consecutive year.
NAMA said it expects to transfer €1 billion to Exchequer during 2021. It transferred €2 billion cash from its lifetime surplus to the Exchequer in June 2020. The agency forecasts that it will deliver a total surplus of €4 billion to the Exchequer, subject to market conditions.
NAMA said it had redeemed the final outstanding €1.06 billion in subordinated debt in March, completing the full repayment of all €32 billion debt originally issued by NAMA to acquire loans.
In May 2020, NAMA acquired the 51% shares held by the private investors in National Asset Management Investment Agency DAC for €56.1 million.
With these repayments, NAMA has extinguished all its senior and subordinated debt obligations, which stood at €31.8 billion at inception.
Accordingly, NAMA is debt free and is now 100% owned by the Minister for Finance.
NAMA’s residential delivery programme continued to facilitate the delivery of housing across Ireland throughout 2020, it said, despite the impact of Covid-19 restrictions on construction.
By end-2020, 19,000 homes have been directly or indirectly delivered through NAMA funding.
Aidan Williams, Chairman of NAMA, said 2020 was a year of significant milestones for NAMA.
“Notwithstanding the difficulties brought about by Covid-19, we redeemed the last of the remaining subordinated debt and our private equity obligations and were therefore in a position to complete the first payment of €2 billion from our lifetime surplus to the Exchequer. This significant payment was made at a critical time for the country and has materially reduced the level of Government borrowing required during the Covid crisis.
Brendan McDonagh, Chief Executive, said 2020 brought many unexpected challenges but NAMA continued to work towards achieving strategic objectives, particularly regarding the funding and facilitating of residential development and the completion of our work in the Dublin Docklands SDZ.
“Importantly, a significant objective for NAMA concluded in December 2020 with the securing of consortium partners for the development of the Poolbeg West SDZ. Alongside this, with €900m cash generated, we will have a profitable 2020 which will enable us to make another substantial €1 billion surplus payment to the Exchequer during 2021.”