Goldman Sachs recognised as primary dealer in Government bonds

THE NATIONAL Treasury Management Agency (NTMA), the Government’s debt management body, has recognised Goldman Sachs International (GSI) as a primary dealer in Irish Government bonds.

GSI, chaired by Irish businessman Peter Sutherland, is the 14th primary bond dealer to be recognised as the NTMA aims to borrow €20 billion this year.

The NTMA said it was confident the Government bond market would “benefit significantly” from GSI’s strong presence in other European sovereign bond markets as a primary dealer.

Goldman Sachs is playing an instrumental role in Greece’s attempts to raise borrowings in the international bond markets to reduce its heavy fiscal deficit.

GSI was already active “in the Irish Government bond market” and the NTMA expects the firm to “add to the depth and liquidity of the market and further enhance the profile of Irish Government bonds for investors”.

The NTMA said it plans to raise €1 billion to €1.5 billion in the second auction of Government bonds this year. The agency hopes to raise the money on a 4 per cent bond maturing in 2014 and a 4.5 per cent bond maturing in 2020.

The Government has this year raised €6.5 billion, more than a third of the State’s annual borrowing needs, including €1.5 billion raised in an auction last month and €5 billion in a syndicated bond sold through banks.

Primary dealers bid in competitive auctions of Irish Government bonds and generate a continuous two-way market in the bonds.