NTMA raises €4 billion from sale of new 10-year benchmark bond

9 January 2019 - The National Treasury Management Agency (NTMA) has today raised €4 billion through the syndicated sale of a new 10-year benchmark Treasury Bond maturing in May 2029. The funds were raised at a yield of 1.123%.

There was strong and broad-based demand for today’s transaction. The total order book at over €18.1 billion is the largest ever received by Ireland for a syndicated bond sale. The book comprised over 180 individual accounts.

The main investor categories were banks (44%), asset managers (27%), hedge funds (11%), pension/insurance (9%) and official institutions (9%).

Country distribution includes Ireland (22%), Germany (19%), UK (19%), Nordics (12%), Other Europe (11%) and France (8%), with other countries including the US and Asia making up the remainder. 

NTMA Director of Funding and Debt Management Frank O’Connor said:

"This is an encouraging start to our 2019 issuance programme. Today’s deal already provides 25% of the mid-point of our target of €14 - €18 billion for the year, with investor appetite for our bonds remaining strong and broadly based. 

This level of demand, coupled with cash balances of more than €15 billion entering 2019, leaves us well placed to meet the maturities that will arise during the year and to continue our strategy of prefunding to meet future redemptions. This gives us flexibility in our issuance activity and increases our ability to borrow on attractive terms and to continue to diversify our funding."

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.