Going Like Hotcakes

Ireland sold bonds worth €4 billion today

A good day’s work, says the Finance Minister.

THE NATIONAL ASSET Management Agency (NTMA) has raised €4 billion in the sale of seven-year debt bonds.

The bonds were sold at a record-low interest rate of 0.867%.

Of the €4 billion issued, 15% was taken up by domestic investors and 85% by overseas investors. The overseas investors were from mainland Europe (33%), UK (29%), Nordics (10%), Asia (6%), the US (6%) and Others (2%).

42% of the issue was sold to fund managers, 34% to banks including central banks, 13% to the pension fund and insurance sector with the remaining 11% spread across private banks, hedge funds and others.

Finance Minister Michael Noonan says the result shows the economy is on track.

“The government’s strategy of removing risks from the financial system and securing a recovery in the Irish Economy is working. The Irish economy is growing strongly, jobs are being created and, having successfully exited the EU/IMF programme in 2013, investors have the confidence to provide funding to Ireland at record low levels.

“The funds that will be raised throughout the year will be used to meet our regular funding requirements but also to complete the refinancing of IMF loans. In 2014 the NTMA refinanced €9 billion in IMF loans and in 2015 will refinance the remaining €9 billion with much cheaper funding.”

Read: The ECB will get radical soon to stop the eurozone going down a deflationary hole

Read: Every single month in 2014 there were fewer and fewer people on the dole queue

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.