Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 91: To ask the Minister for Finance the number of National Asset Management Agency bonds that have been issued to date; the terms of same; the maturity of these bonds; the proportion of these NAMA bonds that are subordinated; the number of NAMA bonds that are envisaged for issue in total; and if he will make a statement on the matter. [1411/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been advised that NAMA has now completed the transfer of loans from debtors with a nominal value of €71.2 billion. As consideration for these loans NAMA has issued €30.2 billion in bonds to the five participating institutions. NAMA issued 95% of this value in Senior Notes totalling €28.65 billion with a further 5% totalling €1.51 billion being issued in subordinated securities. The senior bonds mature in March 2011 and are extendible at the option of NAMA. They are Government-guaranteed Floating Rate Notes and pay interest at a rate of 6 month Euribor or 6 month GBP Libor. The subordinated bonds are callable perpetual fixed rate bonds which may be redeemed from March 2020 onwards. Interest is payable annually on the subordinated bonds if NAMA is considered to be achieving its objectives.

While the issuances to date cover almost all of the original loans to be acquired by NAMA a small number of loans that are subject to challenge as to their eligibility have yet to transfer. I am advised by NAMA that further NAMA bonds totalling €1.4 billion may issue in respect of these loans depending on the outcome of these challenges.

In addition it is intended that individual debtor exposures of €20 million or less in AIB and Bank of Ireland announced as part of the EU/IMF Programme of Support will be acquired before the end of March 2011. It is not possible as yet to estimate the amount of bonds that will be issued in respect of these loans. I will be introducing proposals to amend the legislation in the near future to allow for the transfer of these loans.