Dáil Éireann Debate, Thursday - 16 November 2017
71. Deputy Michael McGrath asked the Minister for Finance the interest rate earned on the bonds issued by the Central Bank to fund the wind down of Anglo Irish Bank promissory notes; the interest rate on the new national debt issued to fund the purchase by the NTMA of the promissory notes from the Central Bank; and if he will make a statement on the matter. [48650/17]
Amharc ar fhreagraSubsequent to the liquidation of IBRC the Central Bank acquired €25.034bn of Floating Rate Notes (FRNs) and €3.46bn of the fixed rate 5.4% Treasury Bond 2025.
The following table sets out the interest rate on each of these bonds:
|
Note Type |
Rate |
Maturity |
Original Nominal acquired by CBI (€m) |
|
Floating Rate Note |
6 month Euribor+268bps |
18/06/53 |
5,034 |
|
Floating Rate Note |
6 month Euribor+267bps |
18/06/51 |
5,000 |
|
Floating Rate Note |
6 month Euribor+265bps |
18/06/49 |
3,000 |
|
Floating Rate Note |
6 month Euribor+262bps |
18/06/47 |
3,000 |
|
Floating Rate Note |
6 month Euribor+260bps |
18/06/45 |
3,000 |
|
Floating Rate Note |
6 month Euribor+257bps |
18/06/43 |
2,000 |
|
Floating Rate Note |
6 month Euribor+253bps |
18/06/41 |
2,000 |
|
Floating Rate Note |
6 month Euribor+250bps |
18/06/38 |
2,000 |
|
Fixed Rate |
5.40% |
13/03/25 |
3,461 |
The floating rate notes with original maturities of 18/06/2038, 18/06/2041, 18/06/2043 and 18/06/2045 have been fully bought back and cancelled by the NTMA.
It is important to note that there was no specific issuance undertaken to fund the purchase of these notes. Instead, the proceeds of all Exchequer borrowings are lodged to the Exchequer account at the CBI and all moneys within that account are fungible.
The first of the floating rate notes was purchased by the NTMA in December 2014.
The weighted average yield on fixed rate benchmark bond issuance by the NTMA in 2015, 2016 and to date in 2017 are as follows:
2015: 1.51%
2016: 0.82%
2017 year to date: 0.89%
