NAMA establishes €2.5bn Euro-Commercial Paper programme

The National Asset Management Agency (NAMA) has today completed the establishment of a €2,500,000,000 Euro-Commercial Paper Programme. The programme, a multi currencies programme in the name of National Asset Management Limited (NAML), the issuing entity, is unconditionally and irrevocably guaranteed by THE MINISTER FOR FINANCE OF IRELAND.

  • Ratings – Both Standard & Poor’s (A-1+) and Moody’s (P-1) have issued short term ratings for the ECP Programme. These are the top short term ratings available and are in line with the Irish sovereign rating.
  • Programme Purpose – NAMA expects day to day operations to be self financing as interest and principal repayments on performing loans are expected to cover coupons payments on NAMA bonds used for the purchase of bank assets and NAMA overheads. However NAMA will have ongoing borrowing requirements for both working capital and asset finance where there is merit in the business case of particular assets. The ECP Programme in particular facilities the funding of these short term working capital needs with issuance ranging from one month to one year.
    Section 50 (1) (2) of the NAMA Act 2009 allows the agency or NAMA group entities to issue debt securities, with or without the guarantee of the Minister, for the financing of the general operations of the Agency or the NAMA group entities and to provide for consideration for the acquisition of bank assets. The Issuer, National Asset Management Limited, is a NAMA group entity. It is responsible, through its operational subsidiaries, for the purchase (and financing of such purchases through the issuance of debt securities), management and disposal of loan assets from participating institutions.
  • Section 50 (3) of the NAMA Act 2009 sets a maximum limit of €5,000,000,000 on such issuance other than the provision of consideration for the acquisition of bank assets.
  • Arranger – UBS Limited.
  • Dealers – Banc of America Securities Limited, Barclays Bank PLC, Citibank International Plc, Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch, Goldman Sachs International, ING Bank NV, The Royal Bank of Scotland plc and UBS Limited.
  • Issue and Paying Agent – The Bank of New York Mellon.