Ireland moves to launch 10-year bond auction for first time since 2010

Ireland may sell as many as €3.0 billion worth of 10-year bonds, perhaps as soon as today even, marking a new chapter in the financial recovery for the country. Ireland’s National Treasury Management Agency noted yesterday it hired Barclays Plc (BARC), Danske Bank A/S (DANSKE), Davy Stockbrokers, HSBC Holdings Plc, Goldman Sachs Group Inc. and Nomura Holdings Inc. as joint lead-managers for the transaction, “details of which will be announced in due course.” The bond was priced to yield 245 basis points over mid-swaps, a fixed- market benchmark.

The bond, which will be issued “subject to market conditions,” will mature in March 2023, the agency said, without giving any further information. Ireland will issue €2.0-3.0 billion of debt in the sale. Indeed, the sale is the latest step by Ireland to return to international bond markets as it exits from a bailout program at the end of this year. The NTMA last issued 10-year bonds in 2010. In November of that year, the Irish government asked for a €67.5 billion international rescue, roiling domestic credit markets.

“This represents an important milestone in the country’s re-engagement with the bond market,” said Philip O’Sullivan, an economist at NCB Stockbrokers in a note. “Today’s launch of new 10 year issuance could have important ramifications for Ireland’s credit rating.”