BRUSSELS (MNI) – Ireland’s National Treasury Management Agency
(NTMA) intends to issue an index-linked bond over the course of next
year, according to the government’s 4-year plan released Wednesday.
The report said there is demand for inflation linked bonds in the
Irish market from both pension schemes and insurers.
This confirms comments from Oliver Whelan, the head of funding &
debt management at NTMA, who last month told Market News International
that Ireland is exploring the idea of issuing an inflation-linked bond
in 2011 when it returns to the market early in the year.
Whelan also said the potential linker issue will be linked to Irish
inflation. This will be Ireland’s first-ever linker bond and has been
brought to the agency’s attention by the industry.
Irish pension funds have significant assets under management but
hold relatively little Irish debt, said the 4-year plan.
“Proposals have been made to the Government by bodies representing
the pensions industry to make certain changes in the legal framework
which would encourage pension funds to invest in Irish Government bonds.
This will benefit both current and future pensioners as a result of the
improvement in the position of their pension funds. As indicated in a
statement last month from the Minister for Social Protection, the
Government is currently considering these proposals”.
Ireland has now completed its 2010 issuance programme after it was
forced to cancel its last remaining bond auctions, given the sharp
widening in Irish spreads to fresh record highs.
Ireland has sold E22.05 billion worth of bonds this year out of its
E20.0 billion target.
— London newsroom: 00 44 20 7862 7494; e-mail:nshamim@marketnews.com
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