Monday 26 August 2019

Government borrows €3.75bn in first 15 year bond deal since 2009

Chief Executive of the NTMA John Corrigan
Chief Executive of the NTMA John Corrigan

Donal O’Donovan

The Government has borrowed €3.75bn on the markets through the first 15 year bond deal since 2009.

Investors placed orders for €8.4bn of bonds, not all of which were filled. The money is expected to be used to repay costly IMF bailout loans.

Enda Kenny said today that Ireland could look at paying back €10bn of the loans this year – more than the €6.1bn  previously indicated.

It will be repaid from a mix of cash already held by the NTMA and the new bonds.

The yield, or effective interest rate is 2.51pc – around half the cost of IMF bailout loans - less than the UK would pay to borrow over a similarly long term.

The Government , through the NTMA had indicated it would borrow €3bn to €4bn in today’s deal.

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