Thursday 14 December 2017

State tipped to issue first bond since exiting bailout next week

John Corrigan, CEO of the National Treasury Managment Agency. Pic Frank Mc Grath.
John Corrigan, CEO of the National Treasury Managment Agency. Pic Frank Mc Grath.
Sarah McCabe

Sarah McCabe

The State will issue its first bond since exiting the bailout as soon as next week, reports suggest.

The sale, which will probably take place through a syndicate of banks, may be held as soon as next week if market conditions allow, according to news wire service Bloomberg.

The National Treasury Management Agency called its network of primary dealers to meetings last month in preparation for the issuance.

A spokesperson for the NTMA declined to comment, but Finance Minister Michael Noonan previously said the State would hold its first debt sale of 2014 at the end of January or the start of February.

Dublin-based financial advisory firm Glas Securities said the odds on a 10-year bond issuance in January have shortened in just a matter of weeks.

"There was a lot of speculation in December that the NTMA will look to issue a new 10-year benchmark deal straight out of the blocks," said Glas Securities.

"With the strong relative performance of Ireland in the final weeks of 2013, the odds of this occurring have probably shortened if anything."

In October, the head of the State's debt management agency, the National Treasury Management Agency (NTMA), said investors who didn't buy Irish bonds after the bailout had lived to regret it.

Investors who believed the "Irish story" and bought government bonds when this country was locked out of the bond markets "made a lot of money", NTMA boss John Corrigan said.

In 2013, Irish bonds handed investors some of the best returns out of 34 countries, according to data from Bloomberg's World Bond Indexes, as the Government continued to meet the targets laid down by the troika and then successfully exited the EU/IMF bailout programme earlier this month.

Ireland recorded a 12pc gain, making it the second best performer in the list. Greece was the star of the show, however, earning a massive 47pc year-to-date return.

Irish Independent

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