State to issue new 20-year syndicated bond
THE State is to issue a new 20-year syndicated bond deal imminently in what looks set to be the first fundraising of the year by any European government.
The National Treasury Management Agency (NTMA) has mandated Barclays, Cantor Fitzgerald, Danske Bank, HSBC, JP Morgan and Morgan Stanley as "joint lead managers" to manage the sale of the new bonds.
In traditional government bond auctions the debt is issued, or sold, to investors through primary dealers. In a syndicated bond the debt is underwritten by a group of banks, who then in effect sell on the risk to investors.
In January last year, the NTMA in Dublin raised €3bn through the syndicated sale of 10-year debt at a yield of 1.156pc. That was the third year in a row the agency ran a sale on January 7.