State looks to borrow €3bn over 30 years in major deal

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State looks to borrow €3bn over 30 years in major deal


NTMA building
NTMA building

THE State will this week look to borrow €3bn for 30 years on the bond market in one of the longest deals ever.

The National Treasury Management Agency (NTMA) has announces plans to launch a new bond maturing in 2050. It is understood the agency will seek to borrow €3bn.

The interest is likely to be close to the 1.347pc yield, or return, on an outstanding 30 year bond – with 25 years left to run – that is traded on the market.

The debt will be raised through a syndication – a structure where one group of banks commits to support the deal and then syndicates – or sells down – part of the risk to other investors.

Barclays, BNP Paribas, Cantor Fitzgerald Ireland, Danske Bank, Deutsche Bank and Goldman Sachs have been appointed as joint lead managers for the new bond.

The deal is expected to take place on Wednesday or Thursday this week. A smaller bond auction planned for this week has been postponed as a result.

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