NTMA hoping to raise ‘millions’ in bonds

The National Treasury Management Agency will attempt to raise a few hundred million euro in an amortising bond over the next couple of days.

There had been speculation that the NTMA was looking to raise over €1bn in its initial amortising bond issue, but sources close to the situation say that the first issue will be in the region of “hundreds of millions”.

The NTMA recently flagged that it would look to raise between €3bn-€5bn in amortising and inflation linked bonds over the next 18 months. Amortising bonds are particularly attractive for pension funds as they make interest and principle repayments every year over their lifetime. Irish pension funds currently hold a very low level of Irish government debt.