Thursday 17 October 2019

Ireland taps bond market for €1.25bn as European shares slip from three-month highs


Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Ireland raised €1.25bn of bonds on the markets yesterday, split between €950m due in 2029 and €300m due in 2037.

The effective interest rate paid will be just 0.846pc for the former and 1.414pc for the latter. Both the issues were oversubscribed.

The National Treasury Management Agency has now raised €5.25bn of the planned €14bn to €18bn of long-term debt it intends to raise this year. Ryan McGrath, head of fixed income strategy and sales at Cantor Fitzgerald Ireland, said the deal showed international investors were focused on Ireland's growth potential, rather than threats like Brexit. Meanwhile, European shares gave up three-month highs after a surprise sharp decline in US retail sales pulled stocks lower in afternoon trading, spoiling an initially upbeat session that saw blue-chips such as Nestle shine on strong earnings.

The pan-European STOXX 600 closed down 0.2pc after spending the first half of the day in positive territory.

Wall Street opened in the red, albeit moderately, after data showing the largest drop in retail sales since September 2009, when the economy was emerging from a recession.

Ireland's Iseq Overall Index shed 0.76pc to 5,949.

Shares in software firm Datalex declined 7.6pc to 73 cent as it said it would lay off staff and target $10m of savings a year.

CRH fell 1.7pc to €26.75, while Paddy Power Betfair was 2.8pc lower as it faces demands for a total of £49m in tax from authorities in Germany and Greece.

Irish Independent

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