NTMA to offer buyback and switch terms to holders of its April 2016 bond
The National Treasury Management Agency is seeking to ease its funding requirements for 2016 by buying back some debt due for repayment that year and offering investors the chance to swap their holdings for a 2023 bond.
The NTMA said yesterday that it would offer the buyback and switch terms to holders of its April 2016 bond. The results of the transactions will be announced later today.
The debt agency has said the country is already fully funded for 2014 and has raised over 70% of the €8 billion earmarked to fully pre-fund itself for 2015 ahead of a bond auction next week.
Other peripheral euro zone countries have also used bond switches to trim future funding needs.
Most recently, Spain last month swapped expensive debt issued at the height of the euro zone crisis for a new 10-year bond.
Next week’s bond auction, which will be held on Thursday, will be the only one held between now and the end of September, the NTMA said yesterday.
A sale of 10-year paper in March was Ireland’s first bond auction since it was locked out of the market in September 2010 and it has continued to raise funds at record low yields this year.
The NTMA also plans to hold a treasury bill auction on September 18.