As part of the liquidation of the Irish Bank Resolution Corporation (IBRC) on 6 February 2013, the Central Bank of Ireland (CBI) acquired €25.034 billion of Floating Rate Notes (FRNs) and €3.461 billion of the fixed rate 5.40% Treasury Bond 2025. The table below sets out the details in respect of each of the eight FRNs and the fixed rate bond, including the applicable interest rates, maturity dates and the nominal amounts originally acquired by the CBI. Reported subsequent movements in the CBI's holdings are reflected in the notes below the table.
Full details of the FRNs and the fixed rate bond, including the offering circulars, can be found on the website of the National Treasury Management Agency (NTMA) at http://www.ntma.ie/business-areas/funding-and-debt-management/government-bonds/.
|
Note Type
|
Rate
|
Maturity
|
Nominal
|
|
Floating Rate Note
|
Euribor+268bps
|
06/18/53
|
5,034
|
|
Floating Rate Note
|
Euribor+267bps
|
06/18/51
|
5,000
|
|
Floating Rate Note
|
Euribor+265bps
|
06/18/49
|
3,000
|
|
Floating Rate Note
|
Euribor+262bps
|
06/18/47
|
3,000
|
|
Floating Rate Note
|
Euribor+260bps
|
06/18/45
|
3,000
|
|
Floating Rate Note
|
Euribor+257bps
|
06/18/43
|
2,000
|
|
Floating Rate Note
|
Euribor+253bps
|
06/18/41
|
2,000
|
|
Floating Rate Note
|
Euribor+250bps
|
06/18/38
|
2,000*
|
|
Fixed Rate
|
5.40%
|
03/13/25
|
3,461**
|
* On 22 December 2014, the NTMA purchased from the CBI and subsequently cancelled €500 million of the FRN due to mature on 18 June 2038. Following the cancellation, the total nominal outstanding for this FRN declined from €2 billion to €1.5 billion and the overall total nominal outstanding for all of the FRNs from €25.034 billion to €24.534 billion
** By end December 2013 the CBI had sold €350 million of the 5.40% Treasury Bond 2025. As of 9 March 2015, the total nominal outstanding of this bond was €11,745 million.
In its 2013 Annual Report the CBI stated that it intends to sell the combined portfolio of the FRNs and the fixed rate bond as soon as possible, provided conditions of financial stability permit. The CBI stated it will sell a minimum of these securities in accordance with the following schedule: to end 2014 (€0.5 billion), 2015-2018 (€0.5 billion per annum), 2019-2023 (€1 billion per annum), and 2024 on (€2 billion per annum until all bonds are sold). As part of these minimum sales, the CBI disclosed in its 2013 Annual Report that it had sold €350 million of the 5.40% Treasury Bond 2025 by end December 2013. There were no sales, purchases or transfers of FRNs in the year 2013.
The CBI has confirmed to officials in my Department that its approach to the disposal of these bonds remains unchanged: they will be sold as soon as possible, provided conditions of financial stability permit, with the minimum disposal schedule for future years, as already mentioned, being unchanged. I have been advised by the NTMA that total cash interest payable on the FRNs was €638 million in 2013 and €755 million in 2014. As noted above, the CBI sold €350 million of its holdings of the 5.40% Treasury Bond 2025 in 2013. However, as the CBI's bond holdings during 2014 have not been published, it is not possible to state the level of interest the CBI received on its holdings in 2014. The next CBI annual report will contain the updated overview of their holdings of these bonds as at YE2014 and is expected to be published in April 2015.
