Written answers
Thursday, 18 December 2014
Department of Finance
Promissory Notes
Michael McGrath (Cork South Central, Fianna Fail)
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103. To ask the Minister for Finance the interest rate that currently applies on the €25 billion of floating rate notes held by the Central Bank of Ireland as a result of the promissory note transaction; and if he will make a statement on the matter. [49269/14]
Michael Noonan (Limerick City, Fine Gael)
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As part of the liquidation of the Irish Bank Resolution Corporation (IBRC) on 6 February 2013, the Central Bank of Ireland acquired €25.034 billion long-dated Irish Government Floating Rate Notes (FRNs) and €3.461 billion of the Irish Government 2025 Fixed Rate Bond. The table below sets out the various notes, the applicable interest rate, the maturity date for each bond and the nominal amounts acquired by the Central Bank.
Full details of the bonds including the offering circulars can be found on the NTMA website at
| Note Type | Rate | Maturity | Nominal |
|---|---|---|---|
| Floating Rate Note | Euribor+268bps | 06/18/53 | 5,034 |
| Floating Rate Note | Euribor+267bps | 06/18/51 | 5,000 |
| Floating Rate Note | Euribor+265bps | 06/18/49 | 3,000 |
| Floating Rate Note | Euribor+262bps | 06/18/47 | 3,000 |
| Floating Rate Note | Euribor+260bps | 06/18/45 | 3,000 |
| Floating Rate Note | Euribor+257bps | 06/18/43 | 2,000 |
| Floating Rate Note | Euribor+253bps | 06/18/41 | 2,000 |
| Floating Rate Note | Euribor+250bps | 06/18/38 | 2,000 |
| Fixed Rate - 5.4% | 5.40% | 03/13/25 | 3,461 * |
In its 2013 Annual Report the Central Bank stated that it intends to sell the combined portfolio of the FRNs and the fixed rate bond as soon as possible, provided conditions of financial stability permit. The Bank stated it will sell a minimum of these securities in accordance with the following schedule: to end 2014 (€0.5 billion), 2015-2018 (€0.5 billion per annum), 2019-2023 (€1 billion per annum), and 2024 on (€2 billion per annum until all bonds are sold). As part of these minimum sales, the Bank sold €350 million of the 5.4% Irish 2025 Government Bond by end December 2013. There were no sales, purchases or transfers of FRNs in the year 2013.
The next Central Bank of Ireland annual report will contain the updated overview of their holdings of these bonds as at YE2014 and is expected to be published in April 2015.
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