NTMA raises €3 billion through syndicated sale of Ireland’s first-ever Sovereign Green Bond

The National Treasury Management Agency (NTMA) has today raised €3 billion through the syndicated sale of a 12-year Irish Sovereign Green Bond.

This is Ireland’s first-ever sovereign Green Bond and a further move by the NTMA to diversify its issuance, accessing a new category of investor and providing a new debt instrument that meets untapped investor demand.

The funds were raised at a yield of 1.399%.

There was strong demand for today’s transaction. The total order book of over €11 billion included in excess of 170 individual accounts, a substantial number of which were new accounts. 

95% of the deal was distributed to non-Irish investors, including the UK 23%; Germany/ Austria and France 19% each; Nordics 12%; BeNeLux 11%; followed by Other Europe at 6%; Americas 4% and rest of the world 1%.

In terms of investor categories, 33% each of the deal was sold to Asset Managers as well as Banks; 19% to the pension and insurance sector; 8% to Central Banks/Official Institutions; 6% to Hedge Funds; and the remaining 1% to other investors.

The transaction attracted increased demand from the three established European centres for green investment, with France accounting for 19% (up from an average of 8% over the last 10 Irish syndications), the Netherlands 9% (up from 2%) and the Nordic region 12% (up from 9%).

NTMA Director of Funding and Debt Management Frank O’Connor said:

“Today demonstrates our commitment to finding attractive new ways to meet the State’s funding requirement by diversifying our issuance and accessing a new base of investors to lend to Ireland. Sovereign Green Bonds are an innovative form of finance and it makes sense for Ireland to be at the forefront of developments in this space.

Today’s transaction brings our year to date funding to over €16.5 billion compared to the NTMA’s stated target of €14 - €18 billion. It leaves the State well placed before our last bond auction of 2018 in November.