PRIVATE INVESTORS will be able to participate through the asset managers of the State’s largest banks and Aviva in investing in a majority stake in the special purpose vehicle (SPV) behind the National Asset Management Agency (Nama).
The structure and shareholding of the SPV is expected to be announced shortly by Nama.
A group of fund managers, including the asset management units of AIB, Bank of Ireland and Irish Life & Permanent (IL&P), is expected to invest some €74 million, matching a €26 million investment by the State in the SPV.
The Government has set up the SPV with private investors to buy the loans with Nama as a way of keeping the agency’s estimated €54 billion debt off the State’s balance sheet after it purchases loans with a face value of €80 billion.
The SPV would issue two types of shares with Nama holding the majority of voting shares, giving the State control over the entity but leaving private investors with majority ownership of the equity.
Discussions on the structure of the SPV have taken place with the asset management firms, led by the Irish Association of Investment Managers. The €100 million invested in the SPV will be used as capital for Nama, which can borrow up to €5 billion to finance unfinished development projects.
Irish Life Investment Managers (ILIM), ILP’s fund management division, Bank of Ireland’s New Ireland Assurance and Aviva Investors are expected to lead the private investments in the SPV.
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