Ireland’s National Treasury Management Agency (NTMA) said it raised €3 billion through the syndicated sale of a new 10-year benchmark bond.
“There was strong demand from a well-diversified investor base for today’s transaction with a total order book in excess of €44 billion which included more than 300 individual accounts,” said the NTMA.
“By issuing €3 billion in today’s transaction, the NTMA has completed almost 40% of the mid-point of its €6 billion to €10 billion bond funding range for 2024.”
The funds were raised at a yield of 2.651%. The bond matures in October 2034.
This is the first new 10-year benchmark bond issued by the NTMA since January 2022.
The NTMA will hold its first bond auction of the year on March 21.
NTMA Director of Funding and Debt Management Dave McEvoy said: “Today’s issue of a new 10-year benchmark bond – our first new 10-year bond since 2022 – is an encouraging start to our 2024 funding programme and highlights the ongoing strong investor demand for Irish sovereign debt.
“The yield at which the bond was issued today reflects the improved risk profile of Irish bonds. Irish bond yields now trade close to that of core European sovereign issuers.
“At €3 billion, the amount issued reflects our relatively limited borrowing requirement this year. Given our healthy cash balances and the relatively low level of maturing debt, our funding position is strong.
“We have a large degree of flexibility in meeting the Exchequer’s funding needs over the remainder of the year.”
Barclays, Cantor Fitzgerald Ireland, Citigroup, BNP Paribas, Danske Bank and JP Morgan are believed to be the joint lead managers of the syndicated bond sale for the NTMA.