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NTMA issues Inflation-Linked Bond maturing in 2045

The National Treasury Management Agency (NTMA) announces it has raised €300 million through the placement of a new Inflation-Linked Bond maturing in April 2045.

This is the second Inflation-Linked issue, the first being a €609.5 million issue in April 2017.

The Bond was issued as a private placement under Ireland’s Euro Medium Term Note (EMTN) Programme. The principal repayment will be linked to the Eurostat Harmonised Index of Consumer Prices (HICP) for Ireland, excluding tobacco.

The Bond has a tenor of 26 years and will mature on 1 April 2045. It was issued at a negative real yield of minus 0.05%.

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

This transaction is an attractive form of borrowing which allows us to harness demand from Irish institutional investors.

Providing an Irish Inflation-Linked bond gives these investors, who would otherwise invest in other Eurozone Inflation-Linked instruments, an investment that is tailored to their specific requirements. This allows us to borrow for a long duration on competitive terms.

It shows our commitment to continued diversification of our issuance activity whenever we see opportunities to meet investor appetite that are consistent with our borrowing requirements”.

The transaction was executed through Davy on foot of a number of reverse enquiries by Irish investors.