NTMA completes buyback of treasury bond

Bond issued in January 2009 due to mature next month

NTMA chief executive John Corrigan  with Minister for Finance Michael Noonan  at Treasury Buildings in Dublin. Photo: Brenda Fitzsimons/The Irish Times

NTMA chief executive John Corrigan with Minister for Finance Michael Noonan at Treasury Buildings in Dublin. Photo: Brenda Fitzsimons/The Irish Times

 

The National Treasury Management Agency (NTMA) has completed a buyback of €4.1 billion of the 4 per cent treasury bond.

On foot of the buyback this amount will be cancelled and the nominal outstanding will decline from €6.848 billion to €2.746 billion.

“Today’s buyback of €4.102 billion leaves just €2.746 billion of the 2014 bond to be redeemed on 15 January 2014, considerably less than the almost €12 billion which had been outstanding at its peak,” an NTMA spokesman said.

Last December, the NTMA cancelled €500 million of a 5 per cent treasury bond due to mature four months later.

The NTMA acquired holdings of the short-dated bond in the secondary bond market, “as part of its normal operations”.

Following the cancellation, the total nominal outstanding for the bond will decline from €5.616 billion to €5.116 billion.