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State could raise €4bn from bond

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

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

PA

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

The National Treasury Management Agency is set to borrow between €3bn and €4bn by issuing seven year bonds, possibly as soon as tomorrow, according to market sources.

The NTMA’s borrowing will be the first test of sentiment for Irish bonds and the Government could need to spend as much as €25bn in order to combat the effects of the coronavirus on the economy.

“The transaction is expected to be launched and priced in the near future subject to market conditions,” the NTMA said, without providing any further details on size and timing.

Prior to the onset of the pandemic, the NTMA has looked set to raise a total of €10bn-€14bn this year.

Online Editors