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NTMA raises €4 billion from sale of new 5-year benchmark bond at a negative yield

The original version of this press release was subsequently updated to include the press release issued by the joint lead managers for the transaction termsheet.

4 October 2017 – The National Treasury Management Agency (NTMA) has today raised €4 billion through the syndicated sale of a new 5-year benchmark Treasury Bond maturing in October 2022. The funds were raised at a negative yield, -0.008%.

There was strong and broad-based demand for today’s transaction. The total order book of over €10 billion included 97 individual accounts. Of the €4 billion issued, over 85% was taken up by overseas investors, including the U.K. (26%), France (17%), US (13%), Germany / Austria / Switzerland (11%) other Europe (11%), and Nordics (7%).

Today’s syndication is linked to the planned early repayment of loans from the IMF, Sweden and Denmark.

“Today’s transaction allows us to refinance the IMF and bilateral loans whilst maintaining our strong cash balance.  This has the advantage of maintaining flexibility around our future funding requirements and taking advantage of debt service cost savings made possible by the current low interest rate environment”, said NTMA Director of Funding and Debt Management, Frank O’Connor.