Here is an example DONT BOTHER READING IT ..The Irish Government is set to borrow around €4bn this week and will open the European bond market for new deals.
The National Treasury Management Agency (NTMA) has mandated Bank of America, Davy, Deutsche Bank, JP Morgan, Morgan Stanley and Nomura as joint lead managers for a new 10 year bond that will be issued through a syndication structure to investors.
The bonds due in 2031 are expected to be launched and priced as early as Tuesday. It will be the first bond deal by any Euro area sovereign borrower this year.
Market sources say the NTMA target is to borrow €3bn to €4bn through the deal, although that could be scaled up to meet demand. The NTMA’s target for borrowing in 2021 is €16bn to €20bn, much of it to plug an expected shortfall between tax revenue and spending as a result of schemes to support the economy through the Covid-19 shock.
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The investor base for the new bond is any professional, retail and eligible counterparty, but demand is expected to be supported once again by the European Central Bank (ECB) in the background.
The ECB cannot lend to Ireland or other Euro members when bonds are issued but is very aggressively buying up debt in the secondary markets.
In December, the ECB committed to keep buying bonds under its pandemic emergency purchase programme “until it judges that the coronavirus crisis phase is over” (and at least until March 2022), and increased its so called envelope or budget by half a trillion euros.
In December bond market analyst Ryan McGrath of Cantor Fitzgerald said that despite the scale of new debt being raised Ireland’s borrowing looks “very manageable” given that it entered the crisis in a good fiscal position. “Markets will continue to look at Ireland very favourably,” Mr McGrath said.