This page is devoted to providing details of what NAMA terms the “tranches” – the divisions of loans that NAMA determined itself to acquire. The first tranches were to absorb higher value loan exposures and later tranches the smaller exposures. You will find links to finer detail by Participating Institution (PI) at the bottom of this page.
NAMA completed the transfer of Tranche 1 in May 2010 and Tranche 2 in August 2010. Tranche 3 was abandoned as NAMA decided to absorb all remaining loans in one tranche per PI.
28th July, 2011. The NAMA annual report contains some new information on the tranches. We had understood that after the first and second tranche transfers, that the tranche system was abandoned and there would simply be one further tranche (“a third tranche”) for each financial institution. It seems from the 2010 Annual Report published today that there are indeed further discrete tranches (3 and 4 are referred to). And the present position is this – tranches 3 and 4 total €19.2bn at nominal value (€8.42bn at consideration paid equating to a haircut of 54%) have been subjected to full valuation and due diligence and the remaining tranches will also have been subjected to full valuation and due diligence “by the final quarter of the year” Oddly enough there is no mention of EU approval of the valuation and due diligence of tranches 3 and 4.
20th December, 2010. AIB report that it has transferred €9.3bn of loans at par value at “an aggregate discount” of 59%.
8th November, 2010. The Irish Examiner is reporting that AIB has transferred €3bn of loans with a 60% haircut which would leave “just over €10bn of AIB’s loans now remain to be transferred to the agency on a phased basis by the end of the year.” The bank says that the loans relate to 20 customers. 9th November 2010. AIB is now reporting that it has transferred €3.2bn of loans to NAMA – “Allied Irish Banks announces that it has transferred loans for a further 20 customers to NAMA totalling €3.2bn. As previously stated, NAMA has estimated the overall discount to be applied to the remaining c.€13.5bn of loans to transfer to NAMA, by year end, including these loans, at 60%. AIB has agreed with NAMA that the final tranche can complete on a phased basis. This transfer is part of the final tranche of €13.5bn of loans that are intended to transfer to NAMA.”
13th October, 2010. Minister for Finance Brian Lenihan provides the Oireachtas with estimates for the remaining tranches as follows:
2nd October 2010. Laura Noonan reports in the Irish Independent that “Nama will not be going ahead with the third tranche of borrowings, which was due to transfer over on Thursday [30th September 2010], and is proceeding on an institution-by-institution basis”
1st October, 2010. It is unclear whether NAMA will complete Tranche 3 as originally intended (€12bn of loans split across the five NAMA Participating Institutions and due for completion yesterday). It seems that following Minister for Finance Brian Lenihan’s announcement yesterday morning, the tranche system is being modified with one remaining tranche per institution. The confusion is exacerbated by two reports in the Irish Times today – in the first the usually knowledgeable Simon Carswell says ” The third tranche of loans due to be transferred imminently was the trigger” whilst Una McCaffrey says “A further €2.3 billion in loans is due to move to Nama after the middle of this month”. That being so this page will be updated shortly to reflect the new arrangements.
NAMA decided to acquire loans in segments or tranches. The first tranche was supposed to be in respect of the Top 10 developers for example. The second tranche supposedly covered the next c40 biggest-scale developers. The third tranche has been seemingly abandoned. From the end of September 2010 NAMA will transfer a further 5 tranches, one each for each Participating Institution (PI – AIB, Anglo, BoI, EBS and INBS). NAMA expects to complete the transfers of the five tranches by the end of 2010, and certainly no later than the EU-imposed deadline of February 2011.
Here is the latest estimate of the totals to be transferred – these estimates exclude the reported €16bn of additional €0-20m loans from AIB and BoI that NAMA decided to absorb in November 2010 following the IMF’s intervention – there is no breakdown of the €16bn by bank. There is more detail of each of the tranches at the bottom of this page.
Here is the spreadsheet of those developers whose loans are reported in the press (though not confirmed by NAMA) to be NAMA-bound together with Irish-based or associated developers whose loans may or may not be NAMA-bound. Updated regularly.
This page has the following sub pages.