Nama will pay a second annual dividend of nearly €84 million to junior bondholders next month.

The State agency is under no obligation to pay out on junior or subordinated debt unless it redeems all its senior debt by 2020.

However, with commercial property prices rising, the agency has began making interest payments on the securities, which were first issued back in 2010.

In a statement on Wednesday, Nama said will make an annual subordinated bond coupon payment of approximately €83.86 million to the holders of its subordinated debt, which amounts to €1.593 billion, on March 1st.

The coupon on the bonds is fixed at 5.264 per cent, based on a 10-year benchmark Government bond yield, plus a margin of 75 basis points.

The payment is linked to the performance of Nama’s porfolio, which insiders say is on course to make €1 billion profit by 2020.

A Nama spokesman said next month’s payment “reflects the improved outlook for repaying Nama’s senior debt and subordinated debt and delivering a surplus for the taxpayer”.