Ireland raises €3 billion from the sale of a new 30-year benchmark bond
- Ireland raises €3 billion from the sale of a new 30-year benchmark bond
- Funds raised at a yield of 3.154%
- Strong demand from a well-diversified investor base
16 January 2025 - The National Treasury Management Agency (NTMA) today commenced its 2025 funding programme by raising €3 billion through the syndicated sale of a new 30-year benchmark bond.
The funds were raised at a yield of 3.154%.
The bond matures in October 2055.
This is the third 30-year benchmark bond issued by the NTMA and the first since May 2019.
Today’s transaction saw strong demand from a well-diversified investor base with a total order book of over €36 billion which included almost 250 individual accounts.
The largest distribution was to German, Austrian and Swiss investors at 22%, closely followed by the UK at 19%. France/Benelux investors bought 16% and the Nordics took 13%. Iberian investors bought 8%, Italy 6% and other European geographies took 8%. Lastly, the domestic investor base accounted for 4% and investors from the rest of the world 4%.
The main investor categories were asset managers at 36%, followed by banks at 28%, insurance and pension companies at 20%, central bank/official institutions 13% and hedge funds 3%.
The €3 billion issued in today’s transaction means the NTMA has completed almost 40% of the mid-point of its €6 billion to €10 billion bond funding range for 2025.
The NTMA will hold its first bond auction of the year on 20 March.
NTMA Director of Funding and Debt Management Dave McEvoy said:
“Today’s 30-year bond transaction demonstrates continuing strong investor appetite for Irish Government bonds.
Owing to the Exchequer’s healthy cash and liquid asset balances, and the projected Exchequer surplus, we expect to have a relatively limited borrowing requirement this year.
The €3 billion raised today represents almost 40 per cent of the mid-point of our 2025 bond funding range, leaving us well positioned to meet the Exchequer’s funding needs over the remainder of the year”.
The original version of this press release was subsequently updated to include the press release issued by the joint lead managers for the transaction termsheet.