The National Treasury Management Agency has issued new bonds with a face value of €3.46 billion to IBRC.
This is in order to facilitate the payment due on the promissory note used to finance the bank.
The new bonds are an extra issue of the existing Irish Government bond due for repayment in October 2025.
The new bond issue increases the amount of debt due on that date to €11.75 billion. The bonds carry an annual interest payment (or coupon) of 5.4%.
These 2025 bonds currently trade at 88.44 - less than the face value of the bond. In order to issue a bond worth €3.06 billion - the amount needed to settle the promissory note payment - it was necessary to issue bonds with a face value of €3.46 billion.
The new bonds will issue and settle on Monday.
ECB has not closed the door on Irish debt solutions
Minister for Finance Michael Noonan has said the ECB has not closed the door to an overall re-engineering of the Irish bank debt.
In a statement last night the ECB said had "noted" the promissory note payment deferral, and added that it expected Ireland to stick to the promissory note repayment schedule which the Irish authorities had signed up to.
He said there was nothing in the statement which upset the Irish authorities. "It was a very matter of fact statement," he said. "It was what we expected."
He said the ECB was aware that the EU and IMF were preparing a policy paper to explore an alternative to the promissory note to give Ireland a less onerous method of repayment.
He said the promissory notes arrangement was complicated because it was "of their nature." In the Irish interest this is a very good arrangement, he said.
