Nama generating €100m per month

The National Asset Management Agency is generating recurring income of €100 million per month, mostly from rents.

The income, which comes in addition to cash generated from asset disposals and loan repayments, has increased substantially since last year as more rental properties have come on to Nama’s books.

The agency said yesterday it had used its income to repay another €1.5 billion of the €32 billion it borrowed in State-backed bonds when founded three years ago. The redemption brings to €4.75 billion the total value of Nama bonds redeemed so far, with €3.5 billion of this repaid this year.

Nama also repaid almost €300 million in 2010 and 2011, bringing to slightly more than €5 billion the reduction in the agency’s indebtedness since its establishment. The funds are repaid on a pro-rata basis to banks that hold Nama bonds, with IBRC the biggest beneficiary, followed by AIB.

Nama generates cash from property disposals and the sale of loans, as well as from property rental income. At the end of October, cash generated from loan repayments and disposals stood at €9.5 billion.

Nama chairman Frank Daly yesterday said it continued to see strong inflows of cash from debtors and is on track to meet its repayment targets.

“Following today’s redemption and the prospect of a strong cash performance being sustained during the coming year, we are confident that we will meet our target of repaying €7.5 billion of senior bonds by the end of 2013.”