Ireland plans to sell as much as €6 billion ($8.36 billion) of 10-year bonds yielding 215 basis points more than mid-swaps, according to ING Groep NV, one of the banks organizing the sale.
Last week the Government raised €1 billion from the sale of two bonds that attracted strong interest from investors.
he State’s fund management body, the National Treasury Management Agency (NTMA) is seeking to raise a record €25 billion for the State this year and has already raised €14.3 billion.
However, due to the funding crisis in the Irish banks and weakness of the Government finances the State is having to pay more for this lending than other European countries.
For its 2016 bond the State is paying an average yield of 4.755 per cent while the 2012 bond was sold at an average yield of 3.056.
The difference in yield, or spread is between Irish and German 10-year bonds – the benchmark gauging the financial associated with the State.