NTMA chief hoping to raise €10bn on markets
IRELAND should be able to raise 10-year loans at around 4.3pc as it returns to borrowing on the commercial markets, NCB Stockbrokers has said in a note.
"We would argue that Irish bonds deserve to trade at a premium over other 'peripherals', given the recent lift to its debt sustainability from the prom note deal and its superior growth prospects, both in the near term and the longer term," NCB chief economist Philip O'Sullivan said.
"Ireland looks like it is transitioning from a non-core eurozone country into a 'semi-core' one, as reflected in the spreads over Germany."
In an interview with the Irish Independent, the chief executive of the National Treasury Management Agency, John Corrigan (pictured), confirmed the agency hoped to raise €10bn on the markets this year, as Ireland prepares to leave the bailout.
"I would define a successful exit as being able to have a series of successful bond auctions," Mr Corrigan said.
Current interest rates were highly attractive in historical terms, but the spread over Germany – which has fallen from 6pc to less than 3pc, would have to decline further in the medium term, he said.
"The NTMA has made no secret of its desire to launch a new issue. Given the lack of repayment dates between 2020 and 2025, we expect the imminent issue of a new 10-year bond," Mr O'Sullivan said.