Ireland Eyes New Year Bond Issue in Latest January Sale

(Bloomberg) -- Ireland could tap bond markets as early as next week, continuing a tradition of being one of the first euro-region countries to sell debt at the start of the year.

The National Treasury Management Agency is set to sell as much as 4 billion euros ($4.5 billion) of debt through a syndicated sale in January, according to Danske Bank A/S.

A sale is likely to come “in the first week of January,” Danske analyst Jens Peter Sorensen said in an emailed response to questions. “Given the modest funding requirement, we expect a deal size of 3 billion euros to 4 billion euros.”

An NTMA spokesman declined to comment.

In 2021 the country raised about 5.5 billion euros through a syndicated sale of 10-year bonds on Jan. 5. That was the eighth year in a row the state raised cash in the first weeks of the new year. 

Ireland’s debt office plans to issue between 10 billion euros and 14 billion euros of debt in 2022, compared to 18.5 billion euros in 2021. It also said it plans at least one syndicated deal during the year. 

The annual total could be below the top end of the range, however, according to Cantor Fitzgerald analyst Ryan McGrath.  “On the assumption of little further economic disruption from Covid, it is already difficult to see the need for the NTMA to issue towards the top end of the stated range,” he wrote in a note to clients on Dec. 10. 

A second syndication in 2022 would be possible if Ireland were to hit the midpoint of its funding range for the year, he said.

Last year Ireland named Bank of America Corp., J&E Davy Holdings, Deutsche Bank AG, JPMorgan Chase & Co., Morgan Stanley and Nomura Holdings Inc. as joint book-runners on the transaction.

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