NTMA raises €2 billion through syndicated tap of the Irish Sovereign Green Bond

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NTMA raises €2 billion through syndicated tap of the Irish Sovereign Green Bond

The National Treasury Management Agency (NTMA) has raised €2 billion through the syndicated tap of the existing 2031 Irish Sovereign Green Bond (ISGB).

This tap reflects the NTMA’s continuing commitment to this market segment, provides liquidity to the existing ISGB and builds on the NTMA’s strategy of diversification.

The funds were raised at a yield of 0.229%.

There was strong demand for today's transaction. The total order book of over €11 billion included in excess of 130 individual accounts.

The majority of the order book was distributed to overseas investors, including the Nordic region 24%; the UK 19%; Germany/Austria 14%; France 11% and other Europe 16%.

In terms of investor categories, 43% of the order book was sold to Asset Managers; 24% to Banks; 14% to Hedge Funds; 12% to the pension and insurance sector, and 6% to Central Banks/Official Institutions.

NTMA Director of Funding and Debt Management Frank O'Connor said:

Today builds on the success of our inaugural Sovereign Green Bond issued this time last year.

It allows us to add liquidity to the bond and to continue our programme of diversification that has seen us widen our investor base and increase the range of debt we offer”.

In light of today’s larger tap, exceeding its target range of €1.0 to €1.5 billion, the NTMA announces the cancellation of the last bond auction of the year scheduled for Thursday 14 November.

In 2019, the NTMA has raised €15 billion from benchmark bond issuance and €400 million in private placements. This brings total medium to long term issuance in 2019 to €15.4 billion against its stated target range of €14 to €18 billion.

Article Published: 17/10/2019