Government to raise €18.4bn in bonds in 2009

Ireland's National Treasury Management Agency (NTMA) said today it is seeking to raise €18.4 billion ($23

Ireland's National Treasury Management Agency (NTMA) said today it is seeking to raise €18.4 billion ($23.16 billion) through a combination of syndicated bond issues and auctions next year.

"The NTMA's objective is to further develop a continuous and liquid yield curve for Irish government bonds out to the 15 year area," it said in a statement.

"The NTMA is in a comfortable cash position and will decide on the timing of its issuance in the light of market conditions."

The NTMA, the asset and liability management arm of the Irish government, said the state's 2009 budget announced earlier this month showed a borrowing requirement of €13.4 billion. A further €5 billion was sought due to a maturing bond next year.

The NTMA said it could tap the bond market for part of the €18.4 billion requirements this year.

"If market conditions were favourable we would consider a new benchmark issue which would be for a sum of €3 billion," NTMA director of funding and debt management Oliver Whelan said.

Reuters