Tuesday 17 January 2017

Ireland issues first ever 100 year government bond at interest rate of just 2.35pc

Published 30/03/2016 | 15:46

Frank O'Connor. Picture: ntma.ie
Frank O'Connor. Picture: ntma.ie

Ireland has issued its first ever 100 year government bond, at the extraordinarily low interest rate of just 2.35pc.

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The National Treasury Management Agency (NTMA) announces today that investors have bought €100m of the super-long term debt.

The low price is good for taxpayers  but an indication that investors fear low inflation is now a long term predicament for the Eurozone. Typically, bond investors seek to beat, or at least match inflation when they invest in long term assets.

The NTMA issued the €100 million note, maturing in 2116, at a yield of 2.35pc, and it was sold by private placement through Goldman Sachs International Bank and Nomura.

NTMA Director of Funding and Debt Management Frank O’Connor said: “This ultra-long maturity is a significant first for Ireland and represents a big vote of confidence in Ireland as a sovereign issuer.” 

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