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NTMA sells €1 billion of new Irish Amortising Bonds at 5.91%

23 August 2012 – The National Treasury Management Agency (NTMA) has announced details of the sale of €1,021.30 million of Irish Amortising Bonds in today’s tap issuance as follows:

  • 35 Year maturity (20 September 2047) – €330.95 million: Yield 5.92%
  • 30 Year maturity (20 May 2042) – €322.90 million: Yield 5.92%
  • 25 Year maturity (20 January2037) – €298.35 million: Yield 5.92%
  • 20 Year maturity (20 March 2032) – €34.1 million: Yield 5.82%
  • 15 Year maturity (20 July 2027) – €35 million: Yield 5.72%

The average yield on the total amount issued was 5.91%.

Today’s tap issue was the first occasion on which the NTMA has offered Irish Amortising Bonds to the market. The amortising bonds are designed and issued to meet the needs of the Irish pensions industry whose natural demand is for long dated bonds.

The Chief Executive of the NTMA, Mr John Corrigan said:

“We are pleased with the result of today’s launch of this new funding product which marks a diversification of Ireland’s sovereign funding programme and another step on the road to full access to the bond markets.

The success of today’s transaction demonstrates the willingness of domestic investors to increase their holdings of Irish Government debt. We expect to be in a position to issue further amounts of amortising bonds as pension fund trustees complete their funding plans in line with the funding standard announced by the Pensions Board on 7 June 2012.

Today’s transaction combined with the bond switch and outright sale transaction of 26 July 2012 and the bond switch transaction of 25 January 2012 has in effect reduced the original “funding cliff” of €11.9 billion in January 2014 by 80% to just under €2.4 billion.”