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NTMA raises €1.5bn in bonds sale

NTMA - Raised €1.5bn in sale
NTMA - Raised €1.5bn in sale

The agency which borrows money on behalf of the State has raised another €1.5bn through the sale of Government bonds on international markets.

But the cost of the borrowing was higher, as the interest rate demanded by investors for ten-year bonds was much higher than in previous sales.

The National Treasury Management Agency sold €750m of bonds due to be re-paid in 2016 and €750m of ten-year bonds to mature in 2020.

The yield, or interest rate, on the 2016 bonds was lower than in last month's auction, but the yield on ten-year bonds climbed to 5.53%, compared with 4.72% in the last sale of similar bonds in May.

Yields on Irish bonds have been climbing recently.

Yesterday, credit rating agency Moody's downgraded Ireland's debt rating, though this had little impact on the bond markets.

Earlier this month, the NTMA said more than 80% of its planned €20bn borrowing target for 2010 had already been raised.

It said the Exchequer was 'fully funded' to meet its needs through the first quarter of 2011.