NTMA raises €1.5bn in bond sale

IRELAND raised €1.5 billion yesterday, at higher interest rates than earlier this year, adding to the €93 billion national debt.

The National Treasury Management Agency (NTMA) bond sale was three times over subscribed, encouraging given the timing of the auction was not helped by Moody’s investors service ill-timed cutting of Greece’s credit rating to junk on Monday. Total long term funding of €16.4bn has been raised to date this year, €15bn through bond sales and €1.4bn in the domestic retail savings market through Prize Bonds, Saving Certificates and the new National Solidarity Bond.

The NTMA said: “With more than 80% of its long term borrowing programme completed, Ireland is in a strong funding position. Allowing for other cash balances the Exchequer is fully funded through end-2010.”