2nd Tranche (completed 23rd August, 2010)

23rd August, 2010. NAMA has confirmed that it has now completed the transfer of Tranche 2. This is the NAMA press release and this is the accompanying NAMA detail. There is a main blog entry today examining the detail in tranche 2 here. Here is the overview.

23rd August, 2010. Various media outlets are asserting that the 2nd tranche for Anglo has transferred. The Irish Times appears to have the most confident reporting saying that €7bn has transferred at a 61% haircut. Still no official confirmation from NAMA though.

22nd August, 2010. Anglo CEO Mike Aynsley tells the Independent that tranche 2 will transfer this weekend (ie today) and that the haircut will be in the low 60s. “We’re going to have the second tranche completion this weekend, and it looks like that [discount] will be in the low 60s”. Elsewhere he lets slip the discount on tranche 2 will be 62% because he says “We’ve shifted a good volume of loans over, some €16bn. There’s still more to come. So far, the average discount between the two tranches has been 58 per cent.” Tranche 1 has a gross of €9.27bn, a haircut of €5.1bn (55.02%), if tranche 2 is €6.73bn to bring the total loans to €16bn and the overall haircut is 58% then that puts the haircut on tranche 2 at 62.1% (though of course roundings on the €16bn and the 58% place the range between 61-64%).

21st August, 2010. According to Bloomberg “two people familiar with the plan [to transfer Anglo’s second tranche]” say that a dicsount of more than 60% will be applied to more than €6bn of loans. Neither NAMA nor Anglo confirmed the story. Whether Bloomberg meanthat 60%+ will be applied to the entire predicted tranche 2 of €8bn or to a €6bn segment is unclear. We should know over the next three days according to the most recent estimates of when tranche 2 for Anglo will be completed. Tranche 2 for the other four financial institutions has already been completed.

16th August 2010.  John Mulligan at the Independent tells us today that the second tranche for Anglo should be completed next weekend (22.8.2010) after €1.4bn was transferred the weekend before last and another slice was transferred in the weekend just gone. There is no update on haircuts but he repeats NAMA’s claim that the delay is down to “the amount of due diligence being undertaken on them and the scale of the loan book”. The decision by the EU last week to “temporarily” approve a further injection of capital into Anglo which Brian Lenihan had already done anyway will of course ensure Anglo are not left insolvent after this second tranche is transferred.

11th August, 2010. Ciaran Hancock doesn’t reveal his sources but twice today in the Irish Times he asserts that Anglo’s second tranche will be €7.5bn, and in one article he asserts the transfer will be completed over the next two weekends – so by 22nd August, 2010. The EU statement yesterday approving further capitalisation into Anglo should ensure there’s no capital-shortage issue in Anglo holding up the transfer.

6th August, 2010. Anglo CEO Mike Aynsley tells RTE News that he expects €1.4bn of the estimated €8bn of gross loans in the second tranche to be transferred to NAMA “this weekend”. This €1.4bn would be the first part of the second tranche.  Is the Minister for Finance drafting yet another (unauthorised state-aid) letter of undertaking to Anglo to meet any capital shortfall caused by losses on the second tranche? Mike Aynsley also said that there were €2-3bn of loans that would not after all be transferred to NAMA after discussions with NAMA – are these more performing loans?

25th July, 2010. The Sunday Tribune reports that Anglo’s Tranche 2 of €8bn nominal with a haircut of upto 60% will be transferred by the middle of August.

20th July, 2010. The Independent reports that AIB had 15 customers in its second tranche, so it would seem that again (unless there were just 8 other customers in the BoI, INBS and EBS tranche 2) that borrowers obtained finance from several institutions. Emmet Oliver also reports that the use of personal guarantees did not feature at INBS, unlike Anglo for example. And unfortunately the use of ringfenced SPVs did feature at INBS.

20th July 2010. The Irish Times reports that the second tranche related to 23 borrowers below the top 10 in tranche 1.

19th July, 2010. NAMA have issued a press release with some data for four of the five institutions. Anglo will transfer, according to NAMA, “after all necessary due diligence material has been received and evaluated” (an entry on here today examined the question of EU approval for Anglo’s second tranche because of the possibility that it will give rise to a requirement for an immediate injection of additional capital). Here’s the summary of what NAMA say in their press release – note there is no information at this point on Current Market Values or Long Term Economic Values.

19th July, 2010. The Independent reports that tranche 2 in respect of four institutions will transfer completely today. Anglo’s tranche 2 will take another 2 weeks because of “delay in processing all the information required by NAMA for each loan being transferred”. Anglo was reported to make up €8bn of the €17bn value of loans in tranche 2 (referring to the value of the loans in the financial institutions).

12th July, 2010. The Independent reports that the second tranche will be transferred at the end of July 2010.

27th June, 2010. The Sunday Business Post reports that tranche 2 will be transferred by the “middle of next month”. So tranche 2 around the middle of July, 2010.

7am, 16th June, 2010. Our friend Simon Carswell at the Irish Times reports that there have been some delays to the second tranche which is now expected, according to the report, to be transferred in lumps over the next few weekends but to be complete by the end of this month “or early next month”.

12am, 4th June, 2010. Simon Carswell claims to have the inside track with two fellow reporters at the Irish Times and outlines today his understanding of Tranche 2 here – in summary €13bn gross loans and transfer in “coming weeks”. Here’s the breakdown:

According to the NAMA CEO, Brendan McDonagh, at the Oireachtas Joint Committee of Finance and the Public Service in April 2010, “With tranche one nearing completion work is already underway on the second tranche of loans of €13 billion, which we expect to take place in the second quarter. By the time the third tranche of €8.5 billion is transferred almost 50% of the total loans due for acquisition will have been already taken over by NAMA.”  No word yet on progress though Frank Daly, the NAMA Chairman,  said on 27th May, 2010 “With the second and third loan tranches amounting to about €21 billion transferring over the coming months, we aim to have about half of the overall transfer completed by the end of July” . Here is his complete speech.

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