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Ireland ready to return to markets for funding for first time since 2010

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John Corrigan

John Corrigan

John Corrigan

THE National Treasury Management Agency (NTMA) is ready to return to the bond markets for the first time since the 2010 EU/IMF/ECB bailout loans.



The agency, which manages the country’s debt, will issue annuity bonds which are new instruments that would be sold to domestic pension funds, according to a report on wire service Bloomberg.

“The NTMA is not prescriptive about any particular term for these bonds but based on industry needs it anticipates that they will be for a range of maturities of up to 35 years,” the NTMA said in an e-mail response to questions from Bloomberg.



“The NTMA is ready to issue these bonds subject to market demand and subject to yield.



“Amortising bonds may be issued at a price determined by the NTMA or may be auctioned in the same manner as normal bond auctions and a decision on this will be made at the time of issuance," the agency said.

Ireland’s cost of borrowing is around 7pc currently and hit a high of 14pc but the country is depending on the €67.5bn in EU/IMF/ECB troika loans for funding.



Earlier this year, John Corrigan, the head of the NTMA, said the agency was involved in an intensive investor relations programme to prepare for a phased return to long-term debt markets.