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Posts tagged ‘SPV (special purpose vehicle)’

Who owns the NAMA Special Purpose Vehicle?

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Who owns the NAMA Special Purpose Vehicle? Pop into any branch of AIB to meet them!

namawinelake | September 26, 2010 at 9:43 am | Categories: NAMA | URL: http://wp.me/pNlCf-Cg

 

Well done to David Clerkin at the Sunday Business Post who reveals today that AIB has confirmed in a “recent” filing (in fact it’s from May 2010 and is available here – section 18.6 on page 150 is what you’re looking for) that of the €17m that AIB has invested in the NAMA SPV, €12m is from the staff pension fund and €5m is on behalf of other clients. The NAMA SPV has initial capital of €100m so it seems current (including retired) members of the AIB staff pension fund own 12% of NAMA. Perhaps someone should ask them are they happy with the financial terms of their investment.

Section 18.6 of the AIB filing above says “18.6 National Asset Management Agency Investment Ltd. (“NAMAIL”) In March 2010, a subsidiary of AIB made an equity investment in 17 million “B” shares of the NAMAIL, a special purpose entity established by NAMA. The total investment amounted to A17 million, of which A12 million was invested on behalf of the AIB Group Irish pension scheme with the remainder invested on behalf of clients.”

There are two noteworthy points in David’s piece in the SBP  – firstly he claims that in respect of the reward available from the investment “this dividend can be no more than the prevailing rate applied to 10-year bonds issued by the Irish government.” I wonder is this speculation on David’s part because the EU Decision in February 2010 which approved the NAMA scheme redacted the details of the rewards available to the SPV investors though it had previously been reported in October 2009 by RTE that SPV dividends would be capped at the 10-year rate (6.47% at close of business on Friday last by the way).

Secondly he claims that there were “extensive efforts” to find overseas investors in the SPV but eventually it was four Irish financial institutions that ponyed up. Given that ratings agencies and others (eg the Economist magazine) are already regarding NAMA bonds as part of general government debt, I wonder if all the jiggery pokery with giving the impression of having private investors in NAMA was worth it – the idea being that if NAMA was a private enterprise its bonds would stay off the national balance sheet. At the time it required a willing suspension of disbelief, now it just looks tawdry and embarrassing (and futile).

 

Source http://namawinelake.wordpress.com/2010/09/26/who-owns-the-nama-special-purpose-vehicle-pop-into-any-branch-of-aib-to-meet-them/

Comment: 

I have already highlighted this fact a few months ago and the blatant lies coming from The Department of Finance is just typical

See link http://thepressnet.com/2010/08/02/why-is-nama-calming-that-it-was-not-a-public-authority/   

Why is NAMA calming that it was not a public authority?

EU Commissioner’s preliminary decision on NAMA
Who is controlling NAMA?
Why is NAMA calming that it was not a public authority?
Is it in order to be able to escape having to supply information on its activities to the public via Freedom of information act?
see what the EU Commissioner’s preliminary decision is 35189551-NAMA-Preliminary-Decision-Reply
to recap this is what NAMA is suposed to be according to the finance Minster
10. NAMA is established as a separate corporate body with a board appointed by the
Minister for Finance under the control of the NTMA. NAMA as a corporate entity will
arrange and supervise the identification of property-backed loans on the books of the
qualifying financial institutions in the State but will delegate under its control the
purchase and management of those loans to a separately created special purpose
vehicle (the “SPV”)2. 95% of the consideration for the purchase of the loans will be
financed by securities guaranteed by the government and the remainder with non-
State guaranteed debt.

11. The SPV will be a separate legal entity with a subscribed capital of !100 million
with private investors owning 51% of the equity and the remainder owned by NAMA.
Given that the SPV is 95% funded by the State however, NAMA representatives on
the board of the SPV have a veto over all decisions of the SPV board that could
affect NAMA or the Government.

12. The SPV will seek to make a profit through the management of the acquired
assets during the lifetime of NAMA, however given that the SPV debt will be
guaranteed by the Government the distribution of the SPV profits to the private
shareholders will be capped and the remainder will accrue to the State.3 The details
of the distribution of the SPV profits are not publicly available.

Now who is in control of this SPC?
Why the investment arms of the three major Irish financial institutions (IL&P, BOI, AIB) thats who! The very vehicle that is there to rescue their own corrupt companies.link here

This is outrageous! Lenihian and his cronies has pulled a con on us all,
The same gangsters that have caused this whole financial collapse are now running NAMA.(The Bankrupt Banks ,have effectively taken control of 80 billion worth of assets for 100 million investment )the barging of the millennium
And it should come as no surprise to see the NAMA board try now to extract themselves from having to answer the hard questions from the probing general public through the Freedom of information act
When will the Irish people rise up and stop this fraud?

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