23. Related Parties Disclosures

23.1 Related parties

Minister for Finance

The issued share capital of the SBCI is owned solely by the Minister for Finance. The authorised share capital of the Company may be increased to such other amount, up to a maximum of €1,000,000,000, as may be determined by the Minister for Finance by order from time to time by virtue of section 11 of the SBCI Act 2014.

NTMA

The NTMA provides staff and business support services to the SBCI. The costs incurred by the NTMA are charged to the SBCI, in accordance with the terms of the Service Level Agreement between the SBCI and the NTMA. In addition, the NTMA provides a source of funding to the SBCI.

Other Government controlled entities

The ISIF, the Central Bank of Ireland, Allied Irish Banks plc. and the National Asset Management Agency (“NAMA”) are related parties of the SBCI as each are under the control of the Minister for Finance.

Government Ministers and Departments

The Department of Agriculture, Food and Marine and the Department of Jobs, Enterprise and Innovation, and their respective Ministers, are related parties of the SBCI as the Irish State has control of both of these Departments and is the ultimate owner of the Company.

Key management personnel

The Company is controlled by the Company’s CEO and its Board. The Chief Executive of the NTMA is an ex-officio member of the Board. The SBCI CEO and the Board have the authority and responsibility for planning, directing and controlling the activities of the SBCI and, therefore, are key management personnel of the SBCI. Amounts paid to key management personnel are disclosed in Notes 8 and 9.

23.2 Transactions and balances with related parties

ISIF Loan Facility

The Company drew down €25 million (2015: Nil) from its €240 million loan facility (2015: €240 million) with ISIF during the financial year. The full amount of this loan is outstanding at the financial year end and is included in the funding and borrowings figures in the Statement of Financial Position.

NTMA recharge

The NTMA incurs costs for the running of the SBCI, which it recharges to the Company. The total of these costs for the financial year was €3.8 million (2015: €3.7 million). Further details in respect of these costs are disclosed in Note 8. There is an amount of €0.2 million payable (2015: €0.4 million) to the NTMA at the end of the financial year.

NTMA developed software

The SBCI purchased software developed internally by the NTMA at a cost of €0.4 million (2015: €0.5 million) during the financial year. €47k (2015: €47k) of the €0.2 million payable to the NTMA at the end of the financial year relates to the purchase of software.

NTMA Loan Facility

During the financial year, the Company entered into a €250 million loan notes programme with the NTMA. €85 million of loan notes were issued by the Company to the NTMA during the financial year. The repayment of these loan notes to the NTMA is outstanding at financial year end and is included in the funding and borrowings figures in the Statement of Financial Position.

Agriculture Cashflow Support Loan Scheme

The Company received €13.9 million of funding from the Minister for AFM during the financial year in connection with the Agriculture Cashflow Support Loan Scheme which the Company launched with the Minister for AFM on 31 January 2017. See Note 17 for further details on the scheme and the funding received at financial year end.

Credit Guarantee Schemes

During the financial year, the Company accrued €0.29 million (2015: Nil) of fee income for its role in administering the Schemes created under the Credit Guarantee Acts 2012 and 2016 on behalf of the Minister for JEI. The full amount of this income was receivable by the Company at financial year end. See the Directors’ Report and Note 7 for further information on the SBCI’s role in these schemes.

Central Bank of Ireland account

At the end of the financial year, the Company held no cash (2015: €114.9 million) at the Central Bank of Ireland. However, there was €8k (2015: €1k) of interest payable to the Central Bank of Ireland by the Company.

Allied Irish Banks p.l.c

The Company issued loans to Allied Irish Banks p.l.c. during the financial year for the purpose of on- lending to Irish SMEs. These loans were outstanding at financial year end and are included in the loans and receivables figures in the Statement of Financial Position.

NAMA rent

During the financial year, the Company incurred costs of €43k (2015: Nil) which are payable to NAMA for the use of office space. This amount was included in operating expenses and is payable at the end of the financial year.

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