Nama portfolio: Cerberus releases letter it wrote to Peter Robinson

In April 2014, Nama sold the loan book in an auction process to US firm Cerberus for £1.2bn

The Cerberus investment fund has released the letter it wrote to the First Minister Peter Robinson which set out how it would manage the Nama loan portfolio.

Cerberus bought the Nama portfolio for just over £1.2bn in April 2014.

The letter was sent in March 2014, the day before Cerberus met Mr Robinson and the then Finance Minister Simon Hamilton.

Cerberus had previously disclosed the existence of the letter.

This was in correspondence with Stormont's Finance Committee.

The committee is investigating the loan sale.

Cerberus originally described the letter as being prepared for presentation "to the Northern Ireland Executive".

It now says it was "to be provided to the Office of the First Minister".

'Use of incentives'

The letter explained how the fund intended to manage the portfolio should its bid succeed.

Nama: The key figures and background you need to know

The letter describes how Cerberus would be prepared to release personal guarantees as part of "consensual plans" with "cooperative borrowers".

It also lays out how it would incentivise borrowers with asset management fees or "if appropriate, profit share structures".

Cerberus has gone on to release some borrowers from loan guarantees, but it is not clear if it has implemented profit shares or other incentives.

The letter echoes a Memorandum of Understanding produced by the First Minister's office at the start of the Nama loan sale process.

In January 2014, that office forwarded a letter to Nama.

Nama said it appeared to "summarise an agreement" between the Northern Ireland Executive and Pimco, another firm which was interested in buying the NI portfolio.

It set out conditions including the release of loan guarantees and the use of incentives including profit shares.

Nama ignored the letter, dismissing it as a "debtors' charter".