The National Treasury Management Agency (NTMA) yesterday raised €3.75bn through the syndicated sale of a new benchmark 10-year bond maturing in March 2024. The funds were raised at a yield of 3.543%. <p>

Investor interest in the issue was even broader than in the previous benchmark bond sale of March 2013. The order book included interest from over 400 fund managers, pension funds, insurance companies, banks and other investors, including some from the Middle East and Asia. The total book amounted to some €14bn. <p>

The 10-year bond sale was the NTMA’s first capital market transaction since Ireland’s exit from its EU/IMF bailout programme on December 15. The size of the final order book and the spread of investor interest across the globe demonstrate the appetite for Irish sovereign debt and Ireland’s ability to fund its needs in the private debt markets. <p>

Notwithstanding the large order book the NTMA restricted the size of yesterday’s deal to €3.75bn in order to accommodate bond auctions in its funding programme for the remainder of 2014. Meanwhile, the debt agency said on Tuesday that its working plan for this year, subject to bond market conditions, is to raise between €6bn and €10bn by way of pre-funding for 2015.
<p><h5>Alan McQuaid</h5>


Disclaimer: www.merrion-capital.com/disclaimer

Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.