Dáil Éireann Debate, Tuesday - 31 March 2015
261. Deputy Michael McGrath asked the Minister for Finance if the National Treasury Management Agency is considering issuing 50-year bonds to take advantage of current record low interest rates; and if he will make a statement on the matter. [12875/15]
View answerAs part of its regular, ongoing funding strategy, the NTMA considers issuance of various maturities subject to market developments and investor appetite. The NTMA announced last December that it plans to issue €12 to €15 billion of long-term bonds over the course of 2015 and has, so far this year, raised €9.5 billion.
Ireland currently has thirteen benchmark bonds with maturities across the yield curve to 2045. This includes a new 30-year benchmark bond, launched in February, at which time the National Treasury Management Agency (NTMA) raised €4 billion. This is the first 30-year benchmark bond issued by Ireland and it is considered by the debt markets to have opened up a new opportunity for Ireland. In addition to the €4 billion raised in February, the NTMA raised a further €1 billion in this long maturity bond at its most recent bond auction on 12 March. This further lengthens the average maturity of the National Debt.
The NTMA has advised that its funding strategy will continue to take account of the quantum of the funding requirement, market conditions, debt servicing implications, and feedback from Ireland's Primary Dealers and investors in Government bonds.
