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According to information published by the National Treasury Management Agency (NTMA), the country plans to re-enter the sovereign debt market with bonds of maturities of between 15 and 35 years, as well as issue its first ever inflation-linked paper. Discussing the changes in the NTMA's annual report, chief executive John Corrigan said: "In order to diversify and increase its sources of funding, particularly from the domestic market, the NTMA has developed, following consultation with the pensions industry, an amortising government bond that will facilitate the creation of long-term annuities, and is also planning its first issue of an inflation-linked Irish government bond". The agency said it was looking to raise between €3b billion and €5 billion from issuances over the next 18 months.
Contradicting previous reports of only reverse enquiry issuance being employed, the NTMA said it would also proceed with auctions at all stages. The move comes as part of the country's attempt to re-establish itself on the sovereign debt market, following its bailout by the EU and the IMF. The NTMA issued its first new debt since the bailout earlier this month, auctioning €500 million of three-month paper at a yield of 1.8 per cent.
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