NTMA sells €1bn worth of bonds

The Irish Times - Business - - NEWS - JOE BREN­NAN

The Na­tional Trea­sury Man­age­ment Agency sold €1 bil­lion of bonds yes­ter­day, bring­ing the amount of debt raised in cap­i­tal mar­kets so far this year to €11.1 bil­lion.

That means the State’s debt-man­age­ment agency has reached the mid-point of the full-year tar­geted range of €9-€13 bil­lion it had set ear­lier this year. The to­tal in­cludes bench­mark bond sales as well as €609.5 mil­lion raised in April through the NTMA’s sale of its first-ever in­fla­tion-linked bond to a group of Ir­ish in­surance and pen­sion funds.

Bailout loans

The fundrais­ing comes as the NTMA, which had €20 bil­lion of cash and liq­uid as­sets at the end of Au­gust, was last week given the task of gath­er­ing €5.5 bil­lion to re­pay the State’s re­main­ing 2010 bailout loans from the In­ter­na­tional Mon­e­tary Fund as well as bi­lat­eral bor­row­ings from Den­mark and Swe­den.

The early re­fi­nanc­ing plan out­lined last week is sub­ject to all EU states agree­ing to waive the right to two EU bailout fa­cil­i­ties, which gave Ire­land €40.2 bil­lion dur­ing the cri­sis, to seek early re­pay­ment at the same time.

While Min­is­ter for Fi­nance Paschal Dono­hoe has com­mit­ted to next year de­liv­er­ing Ire­land’s first bal­anced bud­get since the crash, data is­sued by the Cen­tral Bank on Wed­nes­day showed the NTMA has to re­fi­nance €39.9 bil­lion of gov­ern­ment bonds that are due to ma­ture within the next three years.

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