Pearse Doherty (Donegal South West, Sinn Fein)
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195. To ask the Minister for Finance if he will confirm the approximate cost of capital at the National Asset Management Agency. [18449/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by NAMA that its cost of capital is currently less than 1.5% per annum. NAMA has entered into interest rate hedging which acts as an insurance mechanism to hedge its interest expense against interest rates increases over its lifetime. NAMA's cost of funds derives from both the interest cost on its debt securities and its hedging cost. NAMA's cost of funds will vary over the lifetime of NAMA, depending on the mix of its liability base, the associated costs of these liabilities and its hedging strategy.