| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

We provide access to live business television and business related videos from: Bloomberg TV; The Wall Street Journal; CNBC and the Financial Times. Click image:

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax 2008

Climate Change Reports

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Jun 24, 2009 - 7:34:56 AM


NTMA lauds "great success" in issuing a new Irish 10-year €6 billion benchmark debt bond with annual yield of 5.9%
By Finfacts Team
Jun 23, 2009 - 4:03:35 PM

Email this article
 Printer friendly page

The Irish National Treasury Management Agency (NTMA) announced today that Ireland had successfully issued a new 10-year €6 billion benchmark bond. The bond was issued through a syndicate group of six of Ireland’s primary dealer banks. The annual yield is 5.9%. It's a sign of the times that raising debt is lauded as a "great success."

This issue represents the third syndicated bond issue by Ireland in 2009 and brings to €16 billion the total amount raised by syndication this year. On 8th January €6 billion of a 5-year bond (4% Treasury Bond 2014) was issued through syndication while on 25 February €4 billion of a 3-year bond (3.9% Treasury Bond 2012) was likewise issued through syndication.

The new bond, the 5.9% Treasury Bond which matures on 18 October 2019 was sold at an issue price of €99.794 per €100 nominal, for an annual yield of 5.932%.

Irish investors accounted for 22% of the uptake of the bond.

The Chief Executive of the National Treasury Management Agency, Dr. Michael Somers said: "We are very pleased with the great success of the new bond issue. We are particularly pleased that Ireland could secure substantial long term funding in the very competitive conditions which now prevail in the Government bond markets. The success of this bond issue is a clear signal of the confidence investors have in the Irish Government bond market. We are also pleased to have secured the bulk of our funding requirement for this year."

Somers says in a report on the Irish economy:"Ireland has a record of prudent fiscal policy."

The statement is simply not credible.

The NTMA said in addition to the €16 billion raised through syndications Ireland has also raised €4.7 billion this year through a series of regular scheduled bond auctions. Ireland plans to raise in the region of €5 billion to €6 billion of funding from the five remaining monthly bond auctions which will be held in the months of July through November this year. This funding programme effectively meets Ireland’s funding needs as announced in the Supplementary Budget on 7 April 2009 as well as the refinancing of a €5 billion bond which matured in April.

The ratio of General Government Debt to GDP for Ireland was 43.2 per cent at end 2008, which is 18 percentage points below the EU average. Deducting the value of the National Pensions Reserve Fund and other funds managed by the NTMA from the gross debt would give a Debt/GDP ratio of around 32 per cent at end 2008.

GDP, which includes the large multinational sector, is about 20  per cent higher than GNP -  - a more useful measure.

The gross funding requirement in 2009 is approximately €25 billion. This amount is required to fund an Exchequer deficit of about €20 billion, including expenditure of €3 billion associated with the recapitalisation of the Irish banks and a bond redemption of €5 billion in April.

The National Debt was €54.2 billion at end March 2009. It is forecast to increase to €70.9 billion by the end of 2009.

Related Articles
Related Articles


© Copyright 2009 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%