Wednesday 16 October 2019

NTMA borrows €2bn using ‘green bonds’ amid strong international demand

Bonds: The National Treasury Management Agency HQ. Photo: Julien Behal/PA Wire
Bonds: The National Treasury Management Agency HQ. Photo: Julien Behal/PA Wire

Shawn Pogatchnik

The National Treasury Management Agency has borrowed €2bn from international investors seeking “green bonds” that finance the State’s climate change-fighting projects.

Today’s offer of Sovereign Green Bonds attracted more than €11bn in bids, allowing the NTMA to exceed its original target of issuing bonds in a range of €1bn to €1.5bn.

Successful bidders received 12-year debt securities offering an 0.229pc yield, a positive payout at a time when normal Government bonds are firmly in negative-yield territory.

In October 2018 the NTMA’s maiden auction of €3bn in green bonds also attracted more than €11bn in bids from more than 170 buyers, many of them first-time bidders on Irish debt securities. Such bonds attract specialist foreign fund managers seeking to put their money into environmental projects worldwide.

The NTMA assigned management of today’s auction to Barclays, Bank of America Merrill Lynch, BNP Paribas, Danske Bank, Davy and JP Morgan.

Green bonds finance the State's low-carbon goals within the National Development Plan. It sets a target of spending €23bn by 2027 on water and waste management, clean transportation, sustainable management of living natural resources and land use, renewable and more efficient energy generation, and climate change adaptation projects.

Online Editors

Also in Business