| NTMA raises approximately a quarter of 2013 target funding in Syndicated Tap of 2017 bond, at 3.3 p.c. effectively marking the end of Ireland's lockout from bond markets |
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| January 8th:The funds were raised at a yield of 3.316 per cent. |
The National Treasury Management Agency (NTMA) today (Tuesday 8 January) raised €2.5 billion through the sale by way of syndicated tap of its Treasury Bond which matures in October 2017. The funds were raised at a yield of 3.316 per cent.
Of the amount issued today 13 per cent was taken up by domestic investors and 87 per cent by overseas investors. The overseas investors were mainly from the UK (35.6%), Nordic countries (12.4%), France (9.5%), and Germany (7.2%). Outside of Europe, the US and Asia together accounted for less than 4%.
There was broad investor interest in the issue with over 200 investors submitting bids, including fund managers, banks, pension funds and insurance companies. The total bids received amounted to some €7 billion.
According to the NTMA this bond sale has achieved 25 per cent of its €10 billion 2013 funding target and had eliminated the 'funding cliff' presented by a €11.9 billion bond repayment due in mid January 2014. According to NTMA chief executive John Corrigan, 'Achieving a quarter of our funding plan for 2013 with yesterday’s bond sale is a very encouraging start to the year. The progressive reduction of the January 2014 “funding cliff” has been viewed positively by the investment community and, allied to the fact that it demonstrates that we can raise funds in the market, has been a contributory factor to the fall in Irish bond yields.' The NTMA says it intends to step up its re-engagement with the market during 2013 so that Ireland is positioned to successfully exit the EU/IMF programme. |
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