Saturday 31 January 2015

Government raises €2.5bn in first bond market move of 2013

Published 08/01/2013 | 12:05

Finance Minister, Michael Noonan, and John Corrigan, Chief Executive, NTMA

THE Government has raised €2.5bn today after investors offered to lend as much as €7bn to Ireland as the country returns to the bond market for the first time this year.

The National Treasury Management Agency (NTMA) had been expected to accept €2bn to €2.5bn of the cash offered.

The country is raising money on the markets, through a syndicate of banks rather than the usual bond auction.

The interest rate was 3.35pc.

The deal means that the National Treasury Management Agency, which manages the country's debt, cleared 25pcc of the €10bn it aims to raise this year to fund its 2014 post-bailout needs.

Commmenting on the fund-raising, Finance Minister Michael Noonan said: "“The NTMA’s syndicated issuance today of €2.5bn of bonds maturing in 2017 is a very welcome and positive development. This auction builds on the successful issuances last year.

"The level of demand for today’s auction with €7bn of orders for €2.5bn of issuance was particularly encouraging and was primarily from foreign investors," he added.

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