Ireland’s €3.5bn bond sale attracts €27bn of orders

Ireland’s National Treasury Management Agency (NTMA) announced it raised €3.5 billion through the syndicated sale of a new 10-year benchmark Treasury Bond maturing in October 2032.

The sovereign debt funds were raised at 0.387%.

“There was strong demand from a diversified investor base …” said the NTMA.

“The total order book was in excess of €27 billion and included over 180 individual accounts.

“Ireland reached a broad audience of international investors.

“The largest distribution went to the UK at 30%, followed bv Italy at 13% and the Nordics at 13%.

“Germany/Austria/Switzerland accounted for 11%, France/Benelux 10%, followed by Spain/Portugal at 7% and Ireland at 7%.

“Other European countries together accounted for 3%.

“The Americas and rest of the world took 6%.

“The main investor categories were banks 42%, followed by fund managers 27%, official institutions 17%, hedge funds 8%, and pension & insurance 6%.”

The NTMA said in December it plans to sell €10 billion to €14 billion of bonds over the course of 2022.

This represents a reduction on the €18.5 debt securities sold in 2021.

Frank O’Connor, NTMA Director of Funding and Debt Management, said: “Today’s transaction demonstrated continued strong demand for Irish sovereign debt from a broad base of investors.

“The amount issued reflects our lower funding range of €10-€14 billion for 2022 — significantly below our borrowing in 2021.

“Ireland’s improving fiscal position and our strategy of pre-funding liabilities has left us with substantial cash balances and considerable flexibility in meeting our funding needs.”

Earlier this week, the NTMA said it mandated BNP Paribas, Cantor Fitzgerald Ireland, Citi, Danske Bank, J.P. Morgan and Morgan Stanley to sell the 10-year bonds.