Monday 18 December 2017

NTMA taps ahead of French poll

The National Asset Management Agency Treasury building in Dublin
The National Asset Management Agency Treasury building in Dublin
Donal O'Donovan

Donal O'Donovan

The NTMA will issue debt of €1bn-€1.25bn on Thursday, including bonds not due to be repaid till 2045.

The State has already raised €5.25bn on the bond markets this year, out of a target of raising €6bn- €13bn in 2017.

The National Treasury Management Agency (NTMA) is front-loading bond issuance while borrowing costs remain low and ahead of potential volatility on the markets if French elections in April and May see right-wing eurosceptic Marine Le Pen emerge as winner.

"It's prudent to remove as much political risk as they can, ahead of that," said Ryan McGrath of Cantor Fitzgerald in Dublin. The NTMA said it would auction bonds due in 2026 and 2045 on Thursday.

It's the second time in a month that the agency has offered a choice of tenor to investor, and the first time in two years the 2045 bond has been tapped.

Irish Independent

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