I can advise the Deputy that eight new Floating Rate Treasury Bonds have been issued to discharge the IBRC Promissory Notes liability consisting of:-
- a 25 year bond of €2bn maturing in 2038 with a spread of 2.50%;
- a 28 year bond of €2bn maturing in 2041 with a spread of 2.53%;
- a 30 year bond of €2bn maturing in 2043 with a spread of 2.57%;
- a 32 year bond of €3bn maturing in 2045 with a spread of 2.60%;
- a 34 year bond of €3bn maturing in 2047 with a spread of 2.62%;
- a 36 year bond of €3bn maturing in 2049 with a spread of 2.65%;
- a 38 year bond of €5bn maturing in 2051 with a spread of 2.67%; and
- a 40 year bond of €5bn maturing in 2053 with a spread of 2.68%.
The bonds will pay interest every six months (June and December).
This information is set out in tabular form on the NTMA’s website at the following link: http://www.ntma.ie/news/ntma-issues-eight-new-floating-rate-treasury-bonds-in-exchange-for-promissory-notes/
The credit spreads on the bonds over Euribor were set on the date of issuance and as such will not vary in the future. Given the fixed nature of the spreads, a 1% increase in the Irish credit spread over six month Euribor will not impact upon the interest payment made by the State or the income received on the bonds by the Central Bank of Ireland. However, this may have mark-to-market implications with regard to the bonds held by the Central Bank of Ireland.