NOTE 39. EVENTS AFTER THE REPORTING DATE
On 27 March 2013 the Board of NAMAIL declared and approved a dividend payment of €0.0424 per share, amounting to €2.162m. This was paid to the owners of B ordinary shares only.
On 7 February 2013, the Minister issued a series of directions to NAMA under the IBRC Act. The Directions issued to NAMA were;
This directs NAMA (or a NAMA SPV) to enter a Deed of Assignment and Transfer with the Central Bank to acquire;
- A loan facility deed between IBRC and the Central Bank
- A legal charge between IBRC and the Central Bank over the assets of IBRC.
- The benefit of a guarantee given by the Minister in favour of the Central Bank.
This directs NAMA (or a NAMA SPV) to make a bid for the assets of IBRC at an independent valuation price established by the Special Liquidators.
This directs NAMA to enter into a Facility Agreement with the IBRC Special Liquidators and the NTMA for the purposes of providing working capital to the Liquidator and posting cash collateral for derivative purposes.
This directs NAMA (or a NAMA SPV) that it may pay consideration to the Central Bank in debt instruments and/or cash as NAMA determines.
In response to these Directions, NAMA established a new NAMA group entity, National Asset Resolution Limited (NARL), which was incorporated on 11 February 2013.
On 28 March 2013, NAMA and NARL entered into the Deed of Assignment and Transfer with the Central Bank. Consideration paid was €12.9 billion in the form of the issuance of €12.9 billion of Government Guaranteed debt securities and cash of €343,000. The debt securities were issued by NAML and transferred to NARL via a profit participating loan facility. The debt securities were used by NARL to acquire the Facility Deed from the Central Bank (secured by a floating charge over the assets of IBRC).
In accordance with Section 13 and 14 of the IBRC Act and Direction NAMA/2/13/IBRC Act issued by the Minister, NAMA is directed to bid for the assets of IBRC. This process is expected to occur in the second half of 2013. Further directions may be issued by the Minister as this process continues.
On 11 February 2013, NAMA entered into a loan facility with a maximum drawdown of €1 billion with the Special Liquidators and the NTMA in response to Direction NAMA/3/13/IBRC Act. The facility is to provide the Special Liquidators with working capital and cash collateral to post to derivative counterparties of IBRC. The facility is an interest bearing facility at Euribor plus a margin of 140 basis points and is repayable on demand. At the date of approval of the financial statements €100m had been drawn by the Special Liquidators.
The transactions entered into by the NAMA Group in compliance with the Directions have no impact on the financial statements of NAMA as at 31 December 2012. The first set of financial statements for NARL will be prepared as at 31 December 2013 and will be fully consolidated into the results of the NAMA Group. The full NAMA Group structure is set out in Chart 1 in the Financial Statements. The quarterly results of NARL will be submitted to the Minister in accordance with Section 55 of the Act.