Written answers
Tuesday, 11 November 2014
Department of Finance
Promissory Notes
Tommy Broughan (Dublin North East, Independent)
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211. To ask the Minister for Finance if he will provide a concise yearly breakdown of the promissory note-bond repayment schedule up to 2053 including interest; and if he will make this information available on an annual basis through the Government Publications Office. [43119/14]
Michael Noonan (Limerick City, Fine Gael)
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As disclosed at the time of the Promissory Note transaction the Central Bank acquired €25 billion of Floating Rate Notes (FRNs) and €3.46 billion of Government Fixed Coupon 2025 bonds in return for the Promissory Note. The table below sets out the various notes provided, the maturity date for each bond and the nominal amounts outstanding. Full details of the bonds including the offering circulars can be found on the NTMA website at
-and-debt-management/government-bonds/.
| Note Type | Spread / Rate | Maturity | Nominal |
|---|---|---|---|
| Floating Rate Note | +268bps | 06/18/53 | 5,034 |
| Floating Rate Note | +267bps | 06/18/51 | 5,000 |
| Floating Rate Note | +265bps | 06/18/49 | 3,000 |
| Floating Rate Note | +262bps | 06/18/47 | 3,000 |
| Floating Rate Note | +260bps | 06/18/45 | 3,000 |
| Floating Rate Note | +257bps | 06/18/43 | 2,000 |
| Floating Rate Note | +253bps | 06/18/41 | 2,000 |
| Floating Rate Note | +250bps | 06/18/38 | 2,000 |
| Fixed Rate - 5.4% | 5.40% | 03/13/25 | 3,461 * |
It is not possible to provide a concise annual breakdown of the interest payments associated with the bonds given the floating rate nature of the instruments. The floating rate notes pay a rate of interest calculated by reference to the current 6 month Euribor interest rate plus an agreed Irish spread set out in the table above.
I have been advised by the NTMA that total cash interest payable on the floating rate bonds in 2013 was €638 million. Following the rate reset earlier this year in respect of next months interest payment, total cash interest payable in 2014 will be just over €750 million. The increase in interest payable in 2014 compared to 2013 largely reflects the fact that a full year's interest is payable this year. The estimates of interest payable on the floating rate bonds in the coming years reflect market-based projections for the six-month Euribor interest rate plus the fixed margins. The interest margin averages 2.63% across the eight issues.
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