The National Treasury Management Agency has raised €3 billion through the sale of 10-year debt today after receiving more than €44 billion worth of orders, and the issue could cover as much as half of its annual funding needs.
The new benchmark bond was sold at a yield of 2.65%, one of the banks and brokers hired to sell the security said.
Today marked the first new 10-year benchmark bond issued by the NTMA since January 2022.
The NTMA, which plans to raise €6 billion to €10 billion on the debt market in 2024, kicks off its annual funding drive each year with a syndicated sale that usually attracts high demand.
The order book today was among the highest Ireland's debt office has ever had. Dublin attracted a record €66 billion in 2020 when it sold 6 billion euros' worth of 10-year debt.
Bond sales across Europe have attracted strong demand this week, providing good news for governments who mostly face high funding needs, and reflecting appetite from investors who expect hefty central bank rate cuts this year.
Ireland has a relatively limited borrowing requirement this year due to its large cash balances and the government's healthy budget surplus - a rarity in Europe - which is forecast to hit around 2.7% of gross national income again in 2024.
The country's debt agency left its bond sale at the bottom end of a similar range last year.
The National Treasury Management Agency had mandated Barclays, BNP Paribas, Cantor Fitzgerald Ireland, Citi, Danske Bank and JP Morgan as joint lead managers on the deal.
NTMA Director of Funding and Debt Management Dave McEvoy said today's issue of a new 10-year benchmark bond is an encouraging start to the 2024 funding programme and highlights the ongoing strong investor demand for Irish sovereign debt.
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"The yield at which the bond was issued today reflects the improved risk profile of Irish bonds. Irish bond yields now trade close to that of core European sovereign issuers," Mr McEvoy said.
"At €3 billion, the amount issued reflects our relatively limited borrowing requirement this year. Given our healthy cash balances and the relatively low level of maturing debt, our funding position is strong," he said.
"We have a large degree of flexibility in meeting the Exchequer's funding needs over the remainder of the year," he added.
