The National Treasury Management Agency has today raised €5 billion from the sale of a new 10-year bond, covering more than 40% of the country's annual funding needs in one go thanks to bumper demand.
The debt agency, which plans to raise a relatively modest €10-14 billion this year due to the Government projecting another budget surplus, sold the new bond via a syndicate of banks and brokers at a yield of 3.145%.
The bond matures in June 2036.
The NTMA had targeted around €4 billion from the sale, a market source told Reuters yesterday. But it sold more than that after receiving €43 billion worth of orders for the security.
The NTMA, like some other European debt management offices, typically raises a chunk of funds early in the year by selling bonds through syndication.
Greece attracted a record €51 billion in orders when it sold €4 billion of a 10-year syndicated bond at a yield of 3.47% earlier this week.
Like Ireland, Greece's economy is outperforming most of its European peers. Both countries were locked out of debt markets over a decade ago and had to seek financial bailouts.
Barclays, BofA Securities, Cantor Fitzgerald Ireland, Goodbody, JP Morgan and NatWest were the joint lead managers for the NTMA sale today.
Following today's syndication, the NTMA will hold its first bond auction of the year on March 12.
NTMA Director of Funding and Debt Management Dave McEvoy said that today’s issue of a new 10-year benchmark bond marks a positive start to our 2026 funding programme.
"The strong investor appetite reflects the ongoing demand for Irish Government bonds and Ireland’s AA credit rating, which is on positive outlook with two rating agencies," Mr McEvoy said.
"This transaction means we have raised over 40% of the mid-point of our €10 billion to €14 billion bond funding range, leaving us well positioned to meet the Exchequer’s funding needs over the remainder of the year," he added.
