The National Asset Management Agency has paid back half of its €30.2 billion of senior debt and is on course to pay back 80% by 2016, its chief executive said today. 

The agency has now repaid €15.1 billion since it was created in 2009, Brendan McDonagh said in a statement. 

NAMA has been taking advantage of a surge in demand for Irish property and says it expects to at least break even over its lifetime.

Mr McDonagh said the 50% target reached today had originally been set for 2016. 

"This is a notable milestone for NAMA and one that has been achieved far earlier than anyone would have anticipated when the agency began its work," commented its CEO Brendan McDonagh.

The agency also said that it is redeeming the last tranche of €134m of senior bonds that were issued to the Central Bank to buy a floating charge over IBRC assets.

This means that all of the €12.9 billion in senior bonds that were issued in February 2013 as part of the IBRC liquidation process has been fully redeemed, Mr McDonagh said.

NAMA posts profits of €102m for H1

Meanwhile, NAMA has said that it expects to be able to wind up its operations ahead of schedule.

In a policy statement accompanying its results for the first half of 2014, the asset management agency said it is now on course to complete much of its business by the end of 2017 or mid-2018.

It had been looking at the end of 2018, but the improvement in the property market has seen it step up its activity in recent times and offload a number of significant portfolios.

The agency made a profit of €102m for the six-month period, which is nearly double the €55m recorded at the same time last year.

Its results show that it generated a cumulative €6.9 billion in cash so far this year and has also redeemed €7 billion of senior bonds in 2014.

This takes its total redemptions since inception to €14.5 billion, it added.

As part of efforts to address housing shortages in the greater Dublin area, NAMA earlier this year set up a dedicated "residential delivery team".

This is driving the agency's commitment to complete 4,500 new homes by the end of 2016 and to assess the scope for more houses after that time.

It is thought that 1,000 units will be finished by the end of 2014, another 1,500 in 2015, with the rest to be finished by the end of 2016.

NAMA said that most of the new homes will be delivered on 62 sites where construction has already started or are "shovel ready".

The agency also said it is working on a second group of sites around Dublin that are currently in the planning process or where more planning work is required.

If all of these 287 sites were to be developed, it is estimated that they could deliver 25,000 units after 2016. 

NAMA is also focusing on the completion of a number of residential properties in London in 2015 and 2016, while it is also planning and facilitating the delivery of office accommodation in Dublin with a special focus on the city's Docklands Strategic Development Zone.

The agency has committed to ensuring that a pipeline of large portfolios of mainly Irish property assets will be put up for sale, adding that packaged deals for properties with a minimum value of €250m will be offered for sale every four months.

"The aim is to provide certainty about regular asset flows which will provide clarity to potential investors, including international investors and REITs, and thus help to sustain the positive momentum in the market," NAMA said in its results statement.