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


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.