Bloomberg News

Ireland’s NAMA Likely to Sell $42 Billion Loan Book by Borrower

November 02, 2011

Nov. 2 (Bloomberg) -- Ireland’s National Asset Management Agency will likely sell its 30.5 billion-euro ($42.1 billion) overseas loan portfolio on a borrower-by-borrower basis.

The agency is “unlikely” to sell traditional loan tranches and “most likely” will categorize the portfolio by debtor or geography, according to documents released yesterday. NAMA’s spokesman wasn’t immediately available for comment.

“We expect that the majority of NAMA’s loans will be sold on a borrower-by-borrower basis given the significant personal guarantees and cross collaterization across the borrower connections,” the Dublin-based company said in the documents.

NAMA, set up by the government in 2009 to purge Irish banks of money-losing real-estate assets, plans to sell loans with a face value of 71.2 billion euros by 2019. The agency is seeking to hire advisers to help sell its $640 million U.S. and 30 billion-euro U.K. and European loan portfolios.

More than 56 billion euros is owed to the asset manager by 135 debtors, each of which owes at least 100 million euros, NAMA said in a presentation of its annual results in July. Three debtors owe an average of 2.78 billion euros each.

The company has sold or is marketing about $300 million of U.S. property loans, it said in the documents released yesterday. The U.S. loan book is linked to golf courses, stores, offices, land, developments and industrial units in 14 states, it said.

Advisers’ affiliates will be able to lend to a bidder if “it is not involved in negotiations to acquire the property or have an equity interest,” NAMA said.

NAMA has typically sold properties individually after putting them into receivership. “We’ll probably move in 2012 toward selling more loans than properties. That’s just the nature of the portfolio we’ve got,” NAMA Chief Executive Officer Brendan McDonagh said in an interview in October.

--Editors: Jeff St.Onge, Christine Maurus.

NI CONS NI COS NI CRE NI CREINDUST NI CRELEASE NI CREOFFICE NI CREOWNER NI CRERENT NI CRERETAIL NI EUROPE NI FIN NI MARKETS NI NAMA NI EXCLUSIVE NI FIRST NI REIT NI REL NI RET NI US NI LONDON NI BNK NI EUROPE

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To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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