Statement by the Minister for Finance on Ireland’s Bond Issuance
“The National Treasury Management Agency’s (NTMA) syndicated issuance today of a 10 year bond maturing in March 2023 is a very important step in the State exiting the Programme of Assistance. This 10 year bond is a new benchmark bond and it is particularly pleasing that there was such strong demand for this benchmark bond with over 400 separate orders of €13 billion for €5 billion of issuance. The issuance of €5 billion creates a liquid bond which is good for the market of Irish Government bonds.
The NTMA inform me that 18 per cent of was taken up by domestic investors and 82 per cent by overseas investors. The overseas investors were mainly from the U.K. (25%), Germany (12%), the Nordic region (12%), France (11%) and the U.S. (7%).
Today’s issuance builds on the successful issuances last year and earlier this year, and also the sale of financial sector assets earlier this year. The yield on the bond at 4.15% is very impressive given where the yields on the State’s bonds stood two years ago. This provides long term funding at yields which were not available to Ireland in the years before the crisis.
The level of demand, the broad number and geographical spread of interested investors and the competitive yield on the bond all point to an extraordinary result and I would like to commend the NTMA’s work in raising these funds. This successful result means that the State is well on its way to exiting the EU/IMF Programme on schedule at the end of this year and now has 12 – 15 months funding in place post the exit. .
I would also like to recognize that this issuance is only possible because of Ireland’s progress in returning our economy to growth and the assistance and commitments made by our European Partners.”