Ireland raises 4 bln euros at first 30-year bond sale

Despite record low interest rates, Ireland raised 4 billion euros (4.5 billion U.S. dollars) at its first 30-year bond sale on Tuesday.

The funds were raised at a yield of 2.088 percent, according to the National Treasury Management Agency (NTMA).

The total order book amounted to 11.2 billion euros with interest from over 350 investors. Of the 4 billion euros issued, 95 percent was taken up by overseas investors, including from the United Kingdom, Germany, France, the United States, the Nordic countries, Asia and other mainland European countries.

The main investor categories were asset managers, fund managers, pension funds and insurance companies, banks with the balance spread across hedge funds, central banks, corporates and others.

Barclays, Credit Agricole, Danske Bank, Davy and Royal Bank of Scotland were joint lead managers for the sale.

In Ireland, the NTMA is responsible for borrowing on behalf of the government and managing the national debt. In its 2015 funding plan, the NTMA hopes to raise 12 to 15 billion euros through bond issuance.

"The strength of investor demand for this first 30-year euro benchmark bond at a yield close to 2.0 percent opens up a new part of the yield curve for Ireland and further lengthens our maturity profile. With the completion of today's transaction, the NTMA has now raised 8.0 billion euros since the start of the year, taking us over halfway to our full-year target issuance of 12 to 15 billion euros," said Frank O' Connor, NTMA director of funding and debt management.

The Central Bank of Ireland on Tuesday raised its forecast for 2015 economic growth to 3.7 percent from 3.4 percent, citing stronger consumer and investment spending.

Last year, Ireland's government bond rating was upgraded to Moody's Baa1 (Stable), Standard and Poor's A (Stable), Fitch Ratings A- (Stable). Endit