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NTMA Announces Bond Switch and Outright Sale Results

26 July 2012 – The National Treasury Management Agency announces the results of today’s exchange offer and sale of new bonds in which investors committed a total of €5.23 billion into longer-dated bonds maturing in 2017 and 2020.

Of this, some €4.19 billion was new money for the purchase of the two longer-term bonds on offer – a new 5 year bond maturing in October 2017 and an existing bond maturing in October 2020. A further €1.04 billion was for the exchange of their holdings of the shorter dated 2013 and 2014 bonds into the 2017 and 2020 bonds.

The 2017 bond carried a yield of 5.9 per cent and the 2020 bond a yield of 6.1 per cent. The weighted-average yield on the combined transaction was 5.95 per cent.

Speaking today, NTMA Chief Executive John Corrigan said: “We are very pleased with the success of today’s transaction, particularly the fact that investors committed more than €4 billion of new money to our first long-term issuance since September 2010. This marks a very significant step for Ireland on the way to full bond market access. As a result of today’s transaction, the NTMA has now covered a significant proportion of the €8.2 billion bond maturing in January 2014 which up until now has been seen as a challenging ‘funding cliff.’”