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Government borrows €1.5bn at all time low cost

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NTMA Offices Dublin

NTMA Offices Dublin

NTMA Offices Dublin

The Government borrowed €1.5bn on the bond market at a record low cost to the exchequer on Thursday.

The NTMA issue new bonds due to be repaid in 2027, 2030 and 2035. Only the debt falling due in 2035 carries a positive interest rate – meaning it costs money to borrow above simply paying back the capital.

In all €1.5bn was borrowed on Thursday across three bonds, the €650m due to be repaid in 2027 comes with a negative yield, or interest cost, of -0.42pc - the lowest cost ever for the State.

Another €325m due in 2030 also came at a negative yield of -0.19pc. The yield on €525m due in 2035 is 0.06pc.

The State has now borrowed €22.75bn from its regular bond market deals this year, with one last bond deal due in November. The funds are increasingly being used to plug the gap between tax raised and government spending.

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