Business Irish

Sunday 17 December 2017

State to make first foray into bond markets this year, raise about €3bn

NTMA chief Conor O'Kelly
NTMA chief Conor O'Kelly

Donal O’Donovan

The NTMA has lined up banks to manage a so called syndicated 10 year bond deal, the first major State borrowing this year.

The deal is likely to price as early as Thursday morning.

Market sources said the deal is likely to be around €3bn – a so called benchmark size. The NTMA said it has mandated Bank of America Merrill Lynch, Barclays, Davy, Morgan Stanley, RBS and Societe General as joint lead managers for the deal. In a syndicated bond structure the leads act as underwriters and to sell on portions of the bond to other investors.

The bond deal had been expected, though there were some fears it could be postponed because of volatility in the global financial markets this week. The Government has previously indicated that total borrowing on the markets this year will be in the region of €6bn to €10bn.

Syndicated bond issuance is less common than the regular bond auctions held by the NTMA but similar deals took place in each of the last three Januaries.

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