The National Asset Management Agency (NAMA) will redeem another €2.5bn of senior bonds on Wednesday in its first redemption of 2016.
This will bring to €24.6bn the amount of senior debt redeemed to date, 81% of the €30.2bn of senior debt originally issued to NAMA in 2010 and 2011 to acquire bank loans.
Wednesday’s redemption means NAMA will have already met its end-2016 target of redeeming at least 80% of its senior debt and is on course to meet its ultimate target of redeeming all of its senior debt by 2018.
The contingent liability arising from NAMA’s senior debt is now less than one-fifth of its peak size.
NAMA said strong cash flows it has generated from its assets have contributed to the early repayments.
The agency is set to deliver an overall surplus of €2bn for Irish taxpayers following completion of its dealings.
Commenting on the redemption, NAMA Chairman Frank Daly said: “We have met the 80% debt repayment milestone almost three years ahead of our original target and nine months ahead of our revised target.
“This clearly reflects the enormous progress that NAMA has made since its first loan acquisition which was six years ago this month.”
