Ireland issues a 100 year bond at 2.35%

[Brendan Burgess]

NTMA issues Ireland’s first 100-year note

30 March 2016 – The National Treasury Management Agency (NTMA) announces that it has issued Ireland’s first 100-year note.

The NTMA issued the €100 million note, maturing in 2116, at a yield of 2.35%. It was sold by private placement via two of the NTMA’s primary dealers, Goldman Sachs International Bank and Nomura International plc.

Speaking today, NTMA Director of Funding and Debt Management Frank O’Connor said: “This ultra-long maturity is a significant first for Ireland and represents a big vote of confidence in Ireland as a sovereign issuer.”

Note to Editors:

Notes are issued under Ireland’s Euro Medium Term Note Programme dated 6 October 2015. The Programme provides a structure to create debt instruments to specific maturities which are sold on a placement basis rather than through the auction or syndication process.


Issued on behalf of the NTMA by

David Clerkin

Gordon MRM

 

[rob oyle]

Be interested to see if this rate would become the 'ultimate' long term no risk rate when considering investment options...

 

[Firefly]

It's a decent Canary in the Coal Mine. If we could put the entire 183bn national debt on this never-never 100 year rate of 2.35% (unlikely) our annual interest bill would still be 4.3BN per annum...

 

[Andy836]

€100mm is a drop in the ocean.
Without knowing the buyers or the rationale for their purchases it's hard to read anything into this transaction.
If they got away €1bn now that would be a serious achievement but I don't think much can be read of this - other than politicians claiming how great they did in getting the country back into rude health.

 

[Sunny]

It's not the amount that matters as you would never get a benchmark deal done for 100 years. More than likely it was a pension fund or life insurance company who bought it for ALM purposes. The interesting part of the exercise was that it extends the maturity profile on the yield curve for Irish debt which allows the NTMA greater flexibility. Not worth front page news but it is interesting. It's a good insight to the conditions of the bond market at the moment as well.