NTMA raises €3 billion from sale of new 10-year benchmark bond

The original version of this press release was subsequently updated to include a detailed breakdown of investor take up. It was also updated to include the press release issued by the joint lead managers for the transaction (291 KB, PDF format) and the transaction term sheet (99 KB, PDF format)

7 January 2016 – The National Treasury Management Agency (NTMA) has today raised €3 billion through the syndicated sale of a new 10-year benchmark Treasury Bond maturing in May 2026. The funds were raised at a yield of 1.156 per cent.

In keeping with recent bond issues, there was strong and broad-based interest in today’s transaction. The total order book amounted to €9.6 billion, with 88% taken up by overseas investors, including the U.K. (32%), Nordics (13%), Germany (11%), Netherlands (6%), other Europe (13%), Middle East / Asia (9%) and rest of the world including North America (4%).

Notwithstanding the large order book the NTMA limited the size of today’s deal in order to accommodate bond auctions over the remainder of the year, which are an important element of market liquidity. The NTMA plans to issue €6 billion to €10 billion of long-term bonds over the course of 2016, beginning with today’s transaction.

“This is a strong start to 2016, representing half of our minimum target issuance for the year as a whole and at attractive rates for 10-year funds. Today’s transaction, two years to the day from Ireland’s first bond sale since leaving the EU/IMF programme, confirms that investor demand for Irish bonds remains healthy and broad-based.”