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Sovereign Debt

Dáil Éireann Debate, Tuesday - 23 October 2012

Tuesday, 23 October 2012

Questions (172, 173)

Pearse Doherty

Question:

172. Deputy Pearse Doherty asked the Minister for Finance if he will set out the fees that are typically obtained in a new issuance of €500 million of three month treasury bills by the National Treasury Management Agency, including legal and dealer fees. [46128/12]

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Pearse Doherty

Question:

173. Deputy Pearse Doherty asked the Minister for Finance if he will set out the fees that are typically obtained in the redemption of €500 million of three month treasury bills by the National Treasury Management Agency, including legal and dealer fees. [46129/12]

View answer

Written answers

I propose to take Questions Nos. 172 and 173 together.

As the Deputy is aware the National Treasury Management Agency (NTMA) are implementing a strategy to re-enter the capital markets which involves the issuance of short-term bills. NTMA completed an auction of Irish Treasury Bills on 18 October 2012 selling the target amount of €500 million. Total bids received amounted to €1.8 billion which was 3.6 times the amount on offer. The Treasury Bills, which have a maturity of three months, were sold at an annualised yield of 0.70%. I am advised by the NTMA that there are no legal or dealer fees on top of the actual annualised interest rate paid on Irish Treasury Bills, either upon issuance or redemption. Relatively minor transaction settlement costs are paid to an intermediary bank, to cover the cost of settling Treasury Bills sold to the Primary Dealers through whom the Agency markets Irish government debt.

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