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Dublin: 0 °C Thursday 27 February, 2020

Ireland sells €1 billion in Bank of Ireland bonds

Michael Noonan said the sale marks the start of the process of recovering money for the Irish taxpayer.

Image: Sam Boal / Photocall Ireland

IRELAND HAS MADE back €1 billion of its taxpayers’ money used for the banking bailout today, plus a €10 million profit.

It did so through the sale of Contingent Capital Notes in Bank of Ireland.

Finance Minister Michael Noonan welcomed the surprisingly successful auction.

He said, “This disposal is very positive as it will enable the Irish State to start reducing the level of indebtedness that was generated by the banking crisis.

“Since making the €1 billion investment in Bank of Ireland in July 2011, the Irish taxpayer has received a generous return of 10 per cent per annum on its money while this disposal will also generate a profit in the region of €10 million.”

The Government had expected to sell €500 million worth of bonds.

The State’s investment in the so-called CoCos dates back to the PCAR exercise of July 2011. Noonan believes the exit from this position represents “another step along the road to normalising the State’s relationship with the banking sector”.

Speaking at a press conference, the Minister added, “It is a pretty significant day. Investors abroad will look differently at the Irish banks and the Irish State.”

According to RTÉ, the Government will now look to sell further bonds and preference shares worth €7 billion in Irish banks.

The transaction follows on from yesterday’s NTMA €2.5 billion bond issuance. That body is now in talks with investors with an eye to selling new 10-year bonds.

NTMA in talks with investors on selling new 10-year bonds

Ireland raises another €2.5bn at the bond markets

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