Business Irish

Saturday 21 July 2018

Syndicated bonds to refinance bailout loans achieve negative rate

NTMA's Treasury Building
NTMA's Treasury Building

Gretchen Friemann

The NTMA has sold €4bn worth of five year bonds for a negative yield according to sources - the first time the State has attracted such a rate for syndicated bonds.

An announcement confirming the deal is expected shortly.

It is understood the yield on the bonds is -0.008pc. While this figure just tips the rate into negative territory it repreesnts yet another coup for the NTMA as the agency takes advantage of the recovering economy and the ultra loose policy by the ECB.

Sources said orders for the book exceeded €10.1bn, underscoring the strong demand for Irish paper.

While the amount raised is insufficient to completely clear the outstanding €5.5bn IMF and bi-lateral Danish and Sweded bailout loans, another bond auction is scheduled for November.

The deal was managed by managed by BNP Paribas, Citigroup, Davy, Goldman Sachs, NatWest

and Societe Generale.

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business