merrion street

The NTMA has opened a formal sale process for five new Irish Amortising Bonds this morning with maturity dates ranging from 15 years to 35 years.

Comment by the Minister for Finance, Mr. Michael Noonan T.D. on NTMA Statement in relation to Irish Amortising Bond

“I welcome today’s successful launch by the NTMA of €1 billion of Irish Amortising Bonds with maturities of 15 to 35 year at an average yield of 5.91%. This is the first such issuance of Amortising Bonds in Ireland and represents another important step on our full return to market funding.

This launch represents a successful diversification in the NTMA’s product range and this diversifications to be welcomed. In addition to providing funding to the State, the Amortising Bonds will also provide a stable return to Pension funds and will assist trustees in addressing deficits in pension funds.

The markets are reacting positively to the progress that is been made in restoring order to the public finances, returning the economy to growth, restructuring the banking sector and addressing the legacy debt associated with the recapitalisation of this sector. This offering builds upon the successful bond auction in July, which was well supported by international investors, and highlights the fact that confidence in Ireland and our ability to emerge from the programme and return to a more normal funding cycle is building at home and abroad.

A successful return by the State to full market funding at competitive rates is an essential step on our economic recovery. In addition to providing the necessary funds to finance the State, it will enable our banks and other institutions that are relying on the international markets for funding to fully rengage with the international markets and to access funding at competitive rates. This will benefit all households and businesses.”