Friday 24 November 2017

NTMA raises €200m with surprise long term bond deals

AIB's 25pc share sale marked the biggest European stock market flotation this year so far.
AIB's 25pc share sale marked the biggest European stock market flotation this year so far.
Donal O'Donovan

Donal O'Donovan

The National Treasury Management Agency (NTMA) raised €200m yesterday, in a surprise issue of two bonds of 46 and 47 years' duration.

The debt was placed with investors following reverse enquiry, rather than as part of the debt agency's scheduled borrowing programme.

The debt includes €100m due to be repaid in 2063, and commanding a yield of 2.04pc a year, while €100m maturing in 2064 was sold at a yield of 2.05pc.

Those borrowing costs are extraordinarily low by historic standards. "Our ability to sell bonds with such a long maturity is further demonstration of investor confidence in Ireland as a sovereign issuer," the NTMA said in a statement.

Meanwhile, AIB's 25pc share sale marked the biggest European stock market flotation this year so far. The shares placed at €4.40 each, a premium to Bank of Ireland and in line with European peers Lloyds and ABN Amro.

The stock rose as much as 7pc in off-market trading and is due to trade normally in Dublin and London on Tuesday. Elsewhere, world stocks advanced yesterday and were poised for a modest gain to end the week as a drop in the dollar helped boost sagging oil prices.

The dollar fell against a basket of major currencies as preliminary data on US factory and services activities in June fell short of analyst forecasts, stoking doubts about US economic growth for the rest of 2017.

That drop in the greenback helped crude oil pull away from 10-month lows, although prices were still set for their worst first-half performance since 1997. On the week, both Brent and WTI crude have lost nearly 4pc.

"Oil is probably trying to recoup some of the losses that they've had this week," said Jim Davis, regional investment manager at US Bank Wealth Management in Springfield, Illinois.

Indo Business

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business