State re­ceives €11.3bn of or­ders for first green bonds

The Irish Times - Business - - BUSINESS NEWS - JOE BREN­NAN

The Na­tional Trea­sury Man­age­ment Agency (NTMA) re­ceived about €11.3 bil­lion of or­ders from in­vestors seek­ing to buy the Repub­lic’s set of green bonds.

The €3 bil­lion of 12-year bonds on of­fer were priced yes­ter­day to carry a mar­ket in­ter­est rate, or yield, of 1.399 per cent.

The funds will be used to fi­nance el­i­gi­ble projects such as sus­tain­able wa­ter and waste man­age­ment, clean trans­porta­tion and re­new­able en­ergy deals, as the Na­tional De­vel­op­ment Plan tar­gets €23 bil­lion of spend­ing on green en­ergy schemes over the next decade.

The trans­ac­tion brings the NTMA’s long-term fundrais­ing so far this year to €16.5 bil­lion, com­pared to its stated tar­get of between €14 bil­lion and €18 bil­lion.

Over­seas banks Bar­clays, BNP Paribas, Cit­i­group, Danske Bank, HSBC and JP Morgan shared an es­ti­mated €6 mil­lion in fees from the deal, as Ir­ish bro­ker­ages were over­looked for the first time in decades on an Ir­ish gov­ern­ment bond sale.

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