NTMA raises €3.5 billion from sale of new 20-year benchmark bond
15 April 2021 - The National Treasury Management Agency (NTMA) has today raised €3.5 billion through the syndicated sale of a new 20-year benchmark Treasury Bond maturing in April 2041. The funds were raised at a yield of 0.585%.
There was strong demand from a diversified investor base for today's transaction. The total order book was in excess of €35 billion and included over 200 accounts.
Ireland reached a broad audience of international investors. The largest distribution went to Germany/Austria/Switzerland at 25%, followed by Nordics at 21% and the UK at 15%. Italy accounted for 8%, France 7%, Ireland 6% and other European countries together accounted for 12%. Americas and rest of the World took 7%.
The main investor categories were banks 31%, followed by fund managers 29%, pension & insurance 18%, hedge funds 13%, and official institutions 7%.
Frank O’Connor, NTMA Director of Funding and Debt Management, said:
“Today’s transaction underlines the continued strong demand from a broad investor base for Irish sovereign debt and means that, four months into 2021, we have raised close to 60% of the mid-point of our target funding range of €16 - €20 billion for the year.
Coupled with our strong cash balances, this gives us significant flexibility in meeting our borrowing requirements over the remainder of 2021.
Today’s 20-year transaction reaffirms our approach to issue longer dated bonds when demand allows it. The low interest rate environment over recent years has created opportunities to lock in the benefits of low rates for the longer term and gives us greater certainty over future debt servicing costs”.
The original version of this press release was subsequently updated to include the press release issued by the joint lead managers for the transaction termsheet.