22. Related Parties Disclosures
22.1 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 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.
Other Government controlled entities
The Ireland Strategic Investment Fund (“ISIF”), the Central Bank of Ireland and Allied Irish Banks plc. are related parties of the SBCI as each are under the control of the Minister for Finance.
Key management personnel
The Company is controlled by the SBCI CEO and the 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 7 and 8.
22.2 Transactions and balances with related parties
The following are the transactions that took place during the financial period with related parties:
Minister for Finance share capital
On 23 September 2014, the Minister for Finance (through the ISIF) provided €10 million to the SBCI by way of a subscription for shares in the capital of the Company. The Minister for Finance has also provided guarantees as outlined in Note 17.
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 period was €3,672k. Further details in respect of these costs are disclosed in Note 7. There is an amount of €351k payable to the NTMA at the end of the financial period.
NTMA developed software
The SBCI purchased software developed internally by the NTMA at a cost of €505k during the financial period. €47k of the €351k payable to the NTMA at the end of the financial period relates to the purchase of software.
ISIF Loan Facility
The ISIF provided a loan facility of €240 million to the SBCI, under direction from the Minister for Finance.
Central Bank of Ireland cash deposit
At the end of the financial period, the SBCI held €114.9 million of cash at the Central Bank of Ireland.
Allied Irish Banks p.l.c
The SBCI issued loans to Allied Irish Banks p.l.c. during the financial period for the purpose of on-lending to Irish SMEs. These loans were outstanding at financial period end and are included in the loans and receivables figure of €235.6 million in the Statement of Financial Position.