Our Annual Report this year is published at a time of unprecedented challenge. COVID-19 has taken lives, placed an enormous burden on our health system and wider society, and triggered an economic shock with far-reaching consequences for jobs, livelihoods, employers and the State.
The people who are charged with managing this public health emergency deserve great credit. I want to express the NTMA’s appreciation for the work being done throughout the country by healthcare workers, the emergency services, community groups, volunteers and everyone who has played a part in addressing the challenge we share.
I also want to acknowledge the efforts being made throughout the NTMA – by the Board, the Management Team and by our colleagues at every level in the Agency – to ensure all aspects of the Agency’s critical work on behalf of the State and citizens continue uninterrupted in what I know are exceptionally difficult circumstances.
The NTMA has always recognised the importance of contingency planning; of investment in robust technology and operational platforms; and of investing in our people and their continuous learning. The value and importance of these priorities is clearer than ever today as the Agency, along with every individual and every organisation in the State deals with the challenges posed by the COVID-19 crisis.
The Agency has a strong track record in creating value for the State, during both good times and bad. The challenge which the organisation faces today is to continue to do so, in the most extraordinary environment the Agency has yet faced.READ FULL STATEMENT
In recent months, Ireland has experienced a major economic shock but it is in a strong position to manage it and recover from it.
While our stock of debt remains high and is set to grow further, the risk this presents to our economy has diminished in recent years.
This is down to a range of supportive factors, which include an unprecedented low interest rate environment that is underpinned by an accommodative ECB monetary policy; economic policies that have resulted in a marked improvement in our national finances and material upgrades to our sovereign credit ratings; and a series of measures to enhance our debt sustainability.
The extent of the challenge is significant but our room to manoeuvre has been greatly enhanced by these factors.
Our average cost of debt is less than 2% – down from almost 4% as recently as five years ago. Our annual debt interest bill is heading close to €4bn in 2020 – down from more than €7.5bn five years ago. And we have the benefit of a smooth maturity profile in the years ahead and one of the longest average maturities in Europe.
And while our focus in this time of great uncertainty is to look ahead and plan for the future, the publication of our Annual Report is also a time to reflect on the progress that we have made.
One of the most important milestones from a funding and debt management perspective has been the virtual elimination of the refinancing “chimneys” – unusually large debt redemptions – which were an unwanted legacy of the 2008
The NTMA is responsible for borrowing on behalf of the Government and managing the National Debt in order to ensure liquidity for the Exchequer and to optimise debt service costs over the medium term.
€14.4bn of benchmark bond issuance at a weighted average yield of 0.9% and a weighted average maturity of 16.4 years. The balance was in private placements - two 100-year notes and a new inflation linked bond maturing in 2045.
€2 billion raised at a yield of 0.229%. The transaction saw demand from more than 130 individual accounts.
€5.0 billion was the cash interest cost of the National Debt in 2019, a decline of almost 13% compared to 2018 and more than 30% below the 2014 peak.
The NTMA controls and manages the Ireland Strategic Investment Fund (ISIF) which has a statutory mandate to invest on a commercial basis in a manner designed to support economic activity and employment in
accumulated returns since inception by end-2019, investment returns of +5.1% in 2019.
the total commitment to Ireland including co-investment by private sector partners. ISIF committed €442m in 2019 across 21 investments bringing the total ISIF commitment to €4.6bn.
3,000 new homes sold by end-2019, 6,500
new homes under construction and funding advanced for
a further 5,500.
Acting as the National Development Finance Agency (NDFA), the NTMA provides financial advisory, procurement and project delivery services to State authorities on public infrastructure projects.
the estimated total capital value of a range of education and housing projects being delivered by the NDFA.
providing financial advice on PPP (procurement, construction and operations) and other infrastructure projects in different sectors including housing, climate action, transport and education with an estimated capital value of €5.7bn.
new social homes will be delivered by the State through the Social Housing PPP Programme. The delivery is divided into three distinct project bundles with construction of homes nationwide.
Through NewERA, the NTMA provides a dedicated centre of corporate finance expertise to Government, providing financial advice to Ministers regarding their shareholdings in major commercial
the number of Portfolio company assignments on which NewERA provided financial analysis and, where appropriate, recommendations to Government Ministers.
€261 million in combined dividends were received by the Exchequer from bodies within NewERA’s remit
€2.2bn of capital investment spend in 2018/19, more than three quarters of which related to the energy and water sector companies.
Acting as the State Claims Agency (SCA),
the NTMA manages personal injury and property damage claims against the State and State authorities and provides related risk management services. It also manages claims for legal costs against the State and State authorities, however so incurred.
the State Claims Agency was managing 11,580 active claims with an estimated outstanding liability of €3.6bn at
over half of cases resolved by the State Claims Agency in 2019 were resolved without court proceedings being served.
the State Claims Agency settled 830 bills of costs received from third parties for €68m – a reduction of 39% on the amount claimed.