NTMA Announces Bond Switch and Outright Sale

26 July 2012 – The National Treasury Management Agency has announced details of (1) a new Bond Switch and (2) a new sale of Irish Government Bonds for terms of up to 8 years.

The Agency has opened a formal sale process for the two initiatives this morning which will close this evening at 16:30. This is the first occasion on which the Agency has offered bonds with long-term maturities (2 years or more) for new investors since September 2010.

Bond Switch

Under the Bond Switch, the NTMA is offering holders of existing bonds due to mature in 2013 and 2014 respectively the opportunity of switching their holdings of these bonds into a new 5-year bond maturing on 18 October 2017 and/or the current bond which will mature on 18 October 2020.

Bond Sale

In the outright sale initiative the NTMA will sell the following bonds at the prices stated here for cash:

  • 5.5% Treasury Bond 2017: €98.27 per €100 nominal (Yield) 5.90%
  • 5.0% Treasury Bond 2020: €93.03 per €100 nominal (Yield) 6.10%

As is the case for normal bond auctions conducted by the NTMA, this transaction is confined to the NTMA’s recognised Primary Dealers.