Funding Announcement - Bond Switching and Issuance

The National Treasury Management Agency announces its programme for bond switching and issuance in 2002 to meet its refinancing requirements.

In the second half of January 2002 the NTMA intends, subject to market conditions, to offer the holders of the current 3½% Treasury Bond 2005 terms for switching their holdings into a new 2007 benchmark bond, and will at the same time offer the holders of the current 4% Treasury Bond 2010 terms for switching their holdings into a new 2013 benchmark bond.

In addition to being listed on the Irish Stock Exchange, the NTMA is making arrangements to have the new bonds listed on the Euro MTS electronic trading system not later than 30 June 2002. It is also planned to establish a domestic version of MTS not later than 30 June 2002 on which the existing 2016 bond will be listed. The listing of the bonds on the above systems should greatly enhance turnover, transparency and liquidity.

Subject to normal market conditions prevailing, the NTMA plans to hold a series of monthly auctions over the period from February to November 2002 inclusive, such auctions to be held on the third Thursday of each month. It is expected that each auction will be in the EUR500 million - EUR700 million range. Auctions will be confined to the primary dealers and will be conducted through the Bloomberg Auction System. The bond to be auctioned and the size of the auction will be announced one week in advance of each auction.

The funding position will be kept under review in the light of the evolution of the public finances during 2002 and, should there be any material change in circumstances, a further announcement will be made.

21 December 2001