Noonan: Bonds sale 'another step in return to markets'

Finance Minister Michael Noonan has said the sale of Irish Amortising Bonds on the markets this morning marks another step in Ireland's efforts to make a full return to the bond markets.

The National Treasury Management Agency sold more than €1bn worth of the bonds, the first time these types of bonds have been sold to the market.

The bonds - which have maturities ranging from 15 to 35 years - are designed and issued to meet the needs of the Irish pensions industry, whose natural demand is for long-dated bonds.

In a statement, NTMA Chief Executive, John Corrigan, said he was pleased with today's result.

Mr Corrigan said: "This new funding product marks a diversification of Ireland’s sovereign funding programme and another step on the road to full access to the bond markets.

"The success of today’s transaction demonstrates the willingness of domestic investors to increase their holdings of Irish Government debt.

"We expect to be in a position to issue further amounts of amortising bonds as pension fund trustees complete their funding plans in line with the funding standard announced by the Pensions Board on 7 June 2012.

"Today’s transaction combined with the bond switch and outright sale transaction of 26 July 2012 and the bond switch transaction of 25 January 2012 has in effect reduced the original 'funding cliff' of €11.9bn (due to the January 2014 bond maturity) by 80% to just under €2.4bn."