Sunday 23 July 2017

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

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

Donal O'Donovan

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

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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