NTMA raises €3.75 billion from sale of new 15-year benchmark bond
The original version of this press release was subsequently updated to include a geographic breakdown of investor take up, the press release issued by the joint lead managers for the transaction (157 KB, PDF format) and the transaction termsheet (51 KB, PDF format).
4 November 2014 – The National Treasury Management Agency (NTMA) has today raised €3.75 billion through the syndicated sale of a new benchmark Treasury Bond maturing in May 2030. The funds were raised at a yield of 2.487 per cent.
Of the amount issued today 11 per cent was taken up by domestic investors and 89 per cent by overseas investors. The overseas investors were from Germany, Austria and Switzerland (27%), the U.K. (16%), France (15%), Nordics (11%), Other Europe (7%), Offshore US and Canada (5%), Benelux (5%) and Other (3%).
In terms of investor categories, 51% of the deal was sold to fund managers, 27% to the pension and insurance sector with the remaining 22% spread across banks, central banks, corporates and others.
The order book included interest from over 250 accounts including fund managers, pension funds, insurance companies, banks and other investors. The total book amounted to some €8.4 billion.
Today’s 15-year bond sale represents funding in an area last accessed by Ireland for a new issue in 2009. The yield represents a historical low for 15-year issuance by Ireland.
“The strong demand from investors globally for this longer dated bond, our first 15-year maturity since 2009, demonstrates that Ireland has consolidated and enhanced its market access since making a successful return to the international debt markets earlier this year ” – NTMA Chief Executive John Corrigan.