merrion street

Amount sold: €1,000m

Yield: 2.967%

Length: 10 years

In their first bond auction since September 2010, the NTMA raised €1 billion on the international bond markets at a historically low rate of 2.967% for our 10 year benchmark bond

This is the lowest rate at which the Irish state has borrowed funds and highlights the significant progress made over the past number of years

This removes any lingering doubts about the Government’s decision to exit the EU/IMF programme and the sustainability of Ireland’s market re-entry

Since the Government decision to exit the bailout the NTMA has repurchased over €4 billion in Irish debt and raised €4.75 billion in new funding.

The Irish State is now rated at investment grade by all three rating agencies. The outlook is positive and the benchmark ten year bond rate is now under 3%

John Corrigan stated that successful auction “brings to conclusion the NTMA’s programme for a phased return to the markets carried out over the past two years. The €1 billion funding raised today, together with the €3.75 billion raised in the syndicated issue on 7 January, amounts to almost 60 percent of our funding target of €8 billion for the full year.”

The Medium Term Economic Strategy 2014-2020 is the Government’s new strategy to grow the economy, to eliminate the deficit by 2018 and to return the economy to full employment by 2020.

This Government’s track record of delivery is very strong and it is clear that the markets have confidence in this new strategy and in Ireland’s recovery.