The National Asset Management Agency (Nama) will redeem another €2.5 billion of its senior borrowing on Wednesday, its first redemption in 2016.

This will bring to €24.6 billion the amount of senior debt redeemed to date, 81 per cent of the €30.2 billion of senior debt originally issued in 2010 and 2011 to acquire bank loans.

The agency is to redeem €2.5 billion in senior notes. These are special instruments it gave to the main banking groups in return for loan books it took on from them during the financial crisis.

A Nama statement said that Wednesday’s redemption means that the agency will have already met its end-2016 target of redeeming at least 80 per cent of its senior debt and is firmly on course to meet its ultimate target of redeeming all of its senior debt by 2018.

Nama chief executive Brendan McDonagh said the agency remains on course “to deliver an overall surplus of €2 billion” once it completes its work. This refers to the cash left once it has repaid borrowings relating to its taking on of the loans from the banks. The €2 billion surplus figure was first mentioned by the agency late last year.