NTMA raises €4 billion from sale of new 15-year benchmark bond
8 January 2020 - The National Treasury Management Agency (NTMA) has today raised €4 billion through the syndicated sale of a new 15-year benchmark Treasury Bond maturing in May 2035. The funds were raised at a yield of 0.45%.
There was strong demand for today's transaction. The total order book of over €20 billion included in excess of 200 individual accounts.
The largest distribution was to the UK at 23%, followed by Germany and the Nordics both at 16%. France and Benelux accounted for 11%, Italy 6%, Ireland 3% and other European countries together accounted for 11%. The Americas took 10%, and the Middle East and Asia took 4%
In relation to investor categories, Banks accounted for 45%, Fund managers 25% and Pension Funds and Insurance companies took 17%. Hedge Funds accounted for 9% with Central Banks/Official Institutions, 4%.
NTMA Director of Funding and Debt Management Frank O'Connor said:
“Investor interest in the transaction was very strong and broadly based. The recent S&P upgrade of Ireland, which has widened the pool of investors in Irish issuance, and the continuing improvements in Ireland’s fiscal position have contributed to a tightening of our spreads versus core Eurozone issuers such as Germany and France.
It is encouraging that Ireland continues to benefit from the current low interest rate environment. Today’s transaction supports the favourable trend of reductions in our annual debt servicing costs, which we expect will fall to €4.5 billion for 2020, down from a peak of €7.5 billion in 2014".
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.