NAMA issued a press release this afternoon in which it stated that the first tranche of Anglo’s loans had now been acquired at a discount of 55%. NAMA further stated that the first tranche has now been transferred in its entirety and that €15.3bn of loans had been acquired for a consideration of €7.7bn – an overall discount of 50% according to NAMA.
What immediately leaps out from this terse announcement is that Anglo’s gross first tranche loans have dropped from €10bn to €9.3bn. One can only guess at the reasons for the considerable drop in Anglo’s gross loans in tranche 1 when only one week ago, NAMA were still talking about the first tranche being €10bn.
UPDATE: the 55% discount on Anglo’s first tranche of €9.3bn gross loans and the report that €0.7bn of gross loans have remained with Anglo owing to poor loan documentation and security must surely raise the prospect of Anglo requiring a further significant injection of capital sooner rather than later – last week, we reported that the Financial Regulator requires financial institutions to put in place plans to recapitalise to 8% core tier 1 capital ratios based on the NAMA discount on the first tranche applying to all NAMA-bounds loans from the institution.
