Wednesday 22 November 2017

NTMA bond deal takes redeemed Prom Notes tally to €8.5bn

The former headquarters of Anglo Irish Bank at St Stephen's Green in Dublin. Photo: Niall Carson/PA
The former headquarters of Anglo Irish Bank at St Stephen's Green in Dublin. Photo: Niall Carson/PA
Donal O'Donovan

Donal O'Donovan

The NTMA has cancelled another €500m of bonds linked to the liquidation of the former Anglo Irish Bank after buying them from the Central Bank.

The Central Bank will destroys the €500m it receives from the State.

Following the latest deal, €8.5bn of the €25bn of debt created as part of the liquidation of the Irish Bank Resolution Corporation (IBRC) in February 2013 has been redeemed and cancelled. The debt was created to replace the so-called Anglo Irish Bank promissory notes. The State pays to redeem the bonds, but will save money on future interest payments.

Elsewhere, jitters over a fresh exchange of barbs between North Korea and the United States drove up US Treasury prices and the yen yesterday while they damped sentiment in the US stock market.

MSCI's world equity index, which tracks shares in 46 countries, was little changed, and Britain's main FTSE 100 stock index climbed as Prime Minister Theresa May laid out plans for Britain's exit from the European Union.

North Korea said it might test a hydrogen bomb over the Pacific Ocean, in response to US President Donald Trump's recent threat to destroy the reclusive country in a United Nations address.

"Big noise out of North Korea will keep today's trading defensive," said Peter Cardillo, chief market economist at First Standard Financial in New York. "While we don't expect a serious sell-off, the geopolitical rhetoric could heat up." Sterling slipped after May's speech, but then recovered. May called for Britain to stay in the European Union's single market during a roughly two-year transition out of the EU.

Britain's FTSE 100 was up 0.6pc, while the pan-European FTSEurofirst 300 index rose 0.05pc. In Dublin the Iseq closed down 0.30pc at 6,700.17.

Irish Independent

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