The National Treasury Management Agency (NTMA) has raised €5 billion through the syndicated sale of a new 10-year benchmark bond.
The NTMA, which is the Republic’s funding and debt management agency, said the funds were raised at a yield of 3.145 per cent. The bond matures in June 2036.
The transaction, which was the first of the year for the agency, saw “strong demand” from a “diversified investor base” with a total order book of over €43 billion which included almost 290 orders.
The €5 billion issued means the NTMA has completed more than 40 per cent of the midpoint of its €10 billion to €14 billion bond funding range for 2026.
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Following Wednesday’s syndication, the NTMA will hold its first bond auction of the year on March 12th.
NTMA director of funding and debt management Dave McEvoy said the issue of a new 10-year benchmark bond “marks a positive start to our 2026 funding programme”.
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“The strong investor appetite reflects the ongoing demand for Irish Government bonds and Ireland’s AA credit rating, which is on positive outlook with two ratings agencies,” he said.
“This transaction means we have raised over 40 per cent of the midpoint of our €10 billion to €14 billion bond funding range, leaving us well positioned to meet the exchequer’s funding needs over the remainder of the year.”
The agency set out to raise as much as €14 billion on the international bond markets this year as it grapples with a spike in debt set to mature in 2026.
The plans to issue between €10 billion and €14 billion in debt for the year ahead compares to a range of €6 billion to €10 billion originally planned for 2025. The debt office ultimately raised about €8.25 billion.
“The €10 billion to €14 billion bond funding range for 2026 reflects the €15 billion in debt maturities next year,” Mr McEvoy said towards the end of last year. “The strong exchequer funding position means we are well positioned entering 2026.”
This year’s bond sales will come against a backdrop of growing concerns about the sustainability of the State’s tax receipts, with corporation tax in particular under the spotlight given a handful of big multinationals account for such a huge proportion of that tax.
The State is “well positioned against the backdrop of uncertain markets” even though the Ireland still has debt of more than €200 billion and there is no place for complacency, NTMA chief executive Frank O’Connor said in July.
“There is a strong market awareness of the buffers we have in place through our funding and debt management strategy,” he said.
“The strength of our public finances coupled with the long weighted average maturity of our debt, means we expect to have relatively low borrowing requirements in the short to medium term.”
